Related Articles
Top Stories
May 27 2012 11:21
There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.
May 27 2012 11:49
The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.
May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - Diversified South African-based resources
group Exxaro Resources on Tuesday said it would temporarily suspend its
funding programme as well as the placement of additional contracts associated with
the Grootegeluk Medupi expansion project.
This is after it received notice from power utility Eskom that it is
seeking to review certain commercial terms contained in the Medupi coal supply and
off-take agreement, including the coal price escalation mechanism and the coal
delivery ramp-up.
Exxaro Coal, a wholly-owned subsidiary of diversified South African-based
resources group Exxaro Resources, and Eskom signed the Medupi Coal Supply and
Off-take Agreement (CSA) in September 2008.
In terms of the CSA, Exxaro will supply an average of 14.6 million tonnes per
annum of power station grade coal to Eskom's new Medupi base-load power station,
under construction near Lephalale, Limpopo province, from a brownfields expansion
project at Exxaro's Grootegeluk mine (Grootegeluk Medupi expansion project).
Exxaro's capital expenditure for the Grootegeluk Medupi expansion project is
estimated at R9bn and delivery of first coal was planned to commence in the
fourth quarter of 2011 with a ramp-up to full production by 2014.
"Indications are that the date for first coal delivery to the power station, in terms of
the CSA, has been confirmed to be during the first half of 2012, aligned to the
commercial start-up of the power station," said Exxaro in an update on the agreement.
Exxaro said it is in separate discussion with Eskom with regard to the delivery of
early coal from July 2011, to be used by the power station for pre-commissioning
tests and the creation of stockpiles.
"Pending the outcome of the review process, Exxaro will temporarily suspend its
funding programme as well as the placement of additional contracts associated with
the Grootegeluk Medupi expansion project," Exxaro said.
Addenda to the CSA have been signed by the parties to extend the fulfilment of
various suspensive conditions.
Currently all suspensive conditions are to be fulfilled by February 26, 2010.
- I-Net Bridge