Johannesburg - Anglo American [JSE:AGL] plans to build a 450
MW power plant in South Africa to supply electricity to its platinum subsidiary
Anglo Platinum [JSE:AMS], Business Day newspaper reported on Wednesday.
The paper quoted the head of the company’s coal division in
South Africa Norman Mbazima as saying the plant would cost more than $1bn, and
that seven parties had bid to build the plant near Witbank in eastern
Mpumalanga.
The plant, which is expected to start producing electricity
in 2015, would reduce Amplats' reliance of power supply from state-owned Eskom
and cushion it from large price increases.
A spokesperson for Anglo Thermal Coal could not immediately be
reached for comment.
South Africa has been struggling to meet demand for power as
construction of new plants meant to plug the shortfall have been delayed.
Supply will remain vulnerable until the first units of Eskom's new stations
become operational next year.