South32 mine could solve Kusile hurdle
Klipspruit extension project set to produce enough coal to help supply Eskom’s new power station
South32’s $265m Klipspruit Extension Project, which recently received the go-ahead from the Department of Mineral Resources, will unlock a huge coal resource that can assist with the as-yet unresolved long-term supply needed for Kusile power station. On August 30 the first unit of Kusile came into full commercial operation, adding 800MW to the grid. It will need about 16-million tonnes of coal a year when all six units are operating, which is expected by 2022. Eskom and Anglo American, which owns the closest coal deposit at New Largo, have been locked in discussions for at least four years over a supply contract without making any progress.
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