Friday, February 15, 2008

Emergency coal boost will cost Eskom R11bn


ESKOM will buy an additional 45-million tons of coal at significant extra cost to replenish depleted coal stockpiles, a plan expected to have a ripple effect on generating costs and electricity prices.

The emergency move could cost the utility as much as R11bn, but Eskom says it has no choice if it is to make headway in relieving SA’s power crisis.

In an update on the power situation yesterday, Eskom executive Brian Dames said addressing the utility’s coal problems was the highest priority now.

The 45-million tons of coal would be over and above Eskom’s running requirements, which are 125-million tons a year, and would be added systematically over the next two years in a bid to raise coal reserves at power stations to at least 20 days’ supply.
by Mathabo le Roux
For the rest of this Business Day article, go here.

NVDL: I'm assuming we're using our own coal, but just paying export prices for them? I mean, we're not importing coal, are we? Importing coal whilst exporting to China...

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