Utility to request proposals for Kusile coal supply
Eskom is set to issue a request for proposals to supply coal to the Kusile power station, but some doubt the power station’s viability
Eskom will shortly issue a request for proposals (RFP) to supply coal on a long-term contract to the Kusile power station, which is under construction, Ayanda Nteta, acting GM for fuel sourcing at Eskom, said on Thursday. Anglo American’s New Largo coal project next to Kusile near Witbank would have the substantial capacity needed to supply the 4,800MW power station. Anglo and Eskom have signed a memorandum of understanding relating to supply, but no work has begun on a mine because it does not meet Eskom’s black ownership requirements, raising doubt about the power station’s viability. New Largo is understood to be one of the assets Anglo is planning to sell. Nteta, who was addressing the IHS Markit South African Coal Export Conference 2017, said that in its RFP Eskom would indicate the total volume and the duration of its requirements, but that respondents could state how much coal they could supply and over what period. "It will depend on what the market has to offer. If you have...
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