ELECTRICITY
Eskom to splurge on trucking coal to power stations
Cash-strapped Eskom may pay as much as R100m a month in a desperate bid to truck coal stockpiles from Limpopo to supply two power stations in Mpumalanga, 400km away. An estimated 200 trucks will leave Lephalale daily in a bid to transport 1-million tonnes of Medupi coal to its Kendal and Kusile power stations. The enormous operation puts into perspective the severity of the coal supply crunch Eskom faces. Already in the grips of a financial crisis, it will now incur significant additional costs in procuring coal over and above an ongoing wage negotiation. With about R350bn in guarantees from the government, Eskom poses the single largest risk to the economy. The Treasury has repeatedly said it does not have money to bail out the embattled utility. The stockpiled coal comes from Exxaro’s Grootegeluk mine and was intended to feed the long-delayed Medupi power station, but due to a take-or-pay coal supply deal with the miner, the stockpile has grown to about 20-million tonnes. Cost per...
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