Data provided by McGregor BFA
All data is delayed
Loading...
See More

Govt secures coal for power plants

Jan 30 2013 11:21 Reuters


Related Articles

Coal set to overtake oil as top fuel

Eskom bonus for black mining firms

Coal use to surpass oil in 10 years

SA firms join Eskom's R49m power drive

Transnet: Prices hitting coal exports

Flurry of SA coal trades

 

Cape Town - South Africa has designated coal a "strategic resource", a move that could limit exports to protect supplies for domestic power plants, Mineral Resources Minister Susan Shabangu said on Wednesday.

State-owned power utility Eskom relies on coal to generate 85% of the electricity. It has raised concerns about the quality and quantity of coal received from mining producers.

Eskom has said coal producers have been favouring exports over supplies to the utility given higher returns in the export market.

"Our intention is to ... ensure there is a balance between security of supply locally but also without losing the global markets," Shabangu told a coal conference in Cape Town.

South Africa is one of the world's largest suppliers of thermal coal, shipping its product to Europe and fast-growing markets in Asia.

"We have not decided if it is going to be an export levy or the nature of that. Those are some of the debates in which we've got to engage," she added.

Shabangu said the decision would not be "unilateral" and would seek to balance the country's and the producers' interests.

Coal producers in South Africa include Anglo American [JSE:AGL], BHP Billiton [JSE:BIL], Exxaro Resources [JSE:EXX] and Xstrata.

Eskom is walking a tightrope to keep power flowing to factories, mines and smelters that had to shut for several days five years ago when the national grid nearly collapsed, costing South Africa's economy billions of dollars in lost output.  

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

eskom  |  susan shabangu  |  coal
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

SA political parties go to church

Leaders of different political parties have attended a church service at the Tyrannus Apostolic Church in De Deur.

 
 

Latest elections multimedia

Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air
Elections 2014 in one cartoon
This year's election posters

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...