As demand drops, Eskom sends precautionary force majeure notifications to coal suppliers
This article has been supplied.
Eskom has sent precautionary force majeure notices to all its coal suppliers, notifying them of the possibility that it may ask them to curtail supply as a result of lower demand since the start of the national lockdown.
"None have yet been asked to curtail supply. We are not even certain that this force majeure may be implemented, as it is not clear what the demand profile will be once the lockdown has been lifted," said Eskom spokesperson Sikonathi Mantshantsha.
Force majeure describes a clause which exempts companies from fulfilling contractual obligations in cases of unforeseen disruptions beyond their control.
In an update to shareholders on Tuesday morning Exxaro - one of the power producer's largest coal suppliers - said it had received a force majeure notification for coal supply agreements in place for the supply of the Medupi and Matimba power stations.
"As indicated in the letters received, this will be applicable for the period starting at 16 April 2020 until one month after national lockdown has been completely lifted."
Exxaro said it does not believe that the force majeure is warranted, "as the powers stations are still capable of supplying power".
"Exxaro will vigorously defend its position in this matter and take the necessary action," it added.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation

















