Coal news and updates

National electricity supplier Eskom announced that it has signed a coal supply with an employee-owned mine on Thursday, 12 August. The coal in question will be supplied to the Arnot power station in Mpumalanga.

 

According to the agreement between Eskom and Arnot OpCo (Pty) Ltd, the latter will provide the power supplier with the full coal requirement for “the life of Arnot Power Station” in Mpumalanga. Eskom said the coal is high quality and may be used at its other power stations if necessary.

 

“The contract has an exit clause after Year 6 that may allow both parties to cancel the contract,” said Eskom.

 

The electricity supplier said the agreement will secure the coal supply to Arnot and meet the power station’s burn requirements by conveyor belt – replacing its current supply method, which sees coal brought in by road from multiple sources on short to medium term contracts, “some of which were signed under emergency and urgent procurement.”

 

 Eskom claims the deal will help it reduce the operating costs of the power station while getting quality, affordable, coal.

 

 

Source:https://www.thesouthafrican.com/news