South African miner Exxaro Resources is looking forward to supply coal to state-run power utility Eskom, which is facing critical supply shortages and currently has fewer than 20 days of coal supply at 10 of its power plants in South Africa’s Mpumalanga province. The group suffers from significant financial difficulties and only focuses on supporting its coal-fired plants.
Eskom needs 3 Mt of coal to close its deficit but is also looking to secure another 10 Mt, to ensure sufficient amounts of fuel after one of its suppliers recently cut deliveries and sought insolvency protection. Exxaro already supplies coal to Eskom's Matimba, Matla and Medupi power plants and may sign short-term supply contracts with Eskom.
The company has dropped its nuclear plans and delayed the date on which its current long-term strategy shall be fulfilled. Eskom will assess whether its current business plans are sustainable or whether it shall break up its activities into separate entities overseeing its activities, namely power generation, transmission and distribution.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.