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Eskom in negotiations for dedicated coal mine for Kusile

13th September 2019

By: Simone Liedtke

Creamer Media Social Media Editor & Senior Writer

     

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State-owned power utility Eskom is in negotiations with mining houses for the proposed development of a cost-plus coal mine, solely for supplying coal to the new Kusile power station, Eskom senior project manager Karabo Rakgolela said last week.

Speaking at the Mining Coal Symposium, in Middelburg, Mpumalanga, he told delegates that Eskom was also signing contracts for the procurement of up to 41-million tonnes of coal for its power stations over the next decade.

These are but two of the utility’s plans of action to reduce coal supply constraints in South Africa, especially as the country has a projected coal shortfall nearing 1.3-billion tonnes up to 2050.

This excluded any investments in cost-plus mines, he added.

To put Kusile’s dire situation into perspective, Rakgolela said Kusile would account for about 14% of the estimated 474-million-tonne coal shortfall up to 2030.

Between 2030 and 2050, when the shortfall will be about 859-million tonnes, Kusile will account for about 31% of the shortfall.

Rakgolela said Eskom was working on various initiatives to ensure security of coal supply.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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