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Eskom denies power plant problems

Dec 10 2009 07:34 Dewald van Rensburg

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Johannesburg - Eskom denies that its amendment of the coal-supply contract for the Medupi power station will mean the delayed completion of this important plant.

Exxaro, the mining group that will supply Medupi with 14.6m tons of coal a year, announced on Tuesday that the first planned shipment of coal was being deferred by six months.

This deferral is part of a broad review of the contract - including the price of coal.

Eskom is now asking that Medupi receive its initial coal in the first half of 2012, rather than in the final quarter of 2011.

The agreement with Exxaro is being amended as part of an overarching review of all the power utility's input costs with a view to saving costs, Eskom told Sake 24 by email.

Exxaro has however already suspended financing the mine and postponed capital expenditure while it is re-negotiating its contract with Eskom to end-February.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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