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Eskom signs MOU on coal supply
SAPA | 01 February, 2011 | Comments Rate this article
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Eskom has signed a memorandum of understanding (MOU) with Sekoko Coal to supply coal to its Matimba power station in Limpopo.

"... this MOU marks the largest commitment Eskom has ever made to an emerging black-owned Limpopo-based junior coal mining company at the Matimba power station," Sekoko Coal said in a statement on Tuesday.

The deal showed Eskom was serious about introducing a second coal supplier in the Lephalale area of Waterberg, the company added.

"... this positions Sekoko to be the second coal supplier to Eskom's power stations after Exxaro has been a sole supplier for more than 20 years in the region."

Coal production at the Waterberg coal project would start at about 43,000 tons per month in April 2012. This would increase to 83,000 tons per month by April 2015.

The Waterberg coal project is a Sekoko/Firestone Energy Limited joint venture.

"This development with Eskom puts Sekoko JV in an advantageous position, and it can now also proceed with the development of phase two of the Waterberg coal project and the procuring of the necessary financing," Sekoko's executive chairman Timothy Tebeila said.

The Waterberg coalfield contains around half of South Africa's remaining coal resources.

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