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Exxaro to send test train from Grootegeluk in bid to ease Eskom coal shortages

Coal News - Published on Mon, 18 Mar 2019

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MiningMX reported that EXXARO Resources will send a “test train” carrying coal to Eskom power stations in Mpumalanga province from its Waterberg operations in the Limpopo province in an effort to relieve pressure on the utility’s coal procurement requirements and whilst technical problems at Medupi power station restrict contracted coal deliveries.

Ms Nombasa Tsengwa, head of Exxaro’s coal business, said that “Eskom did not take as much coal as it should in 2018. We have got clear remedies in our contracts which allow us to re-direct coal to Matimba [power station, near Lephalale in Limpopo province] and take-or-pay. But Eskom asked us to redirect coal from the Waterberg to Mpumalanga and we are helping them in this regard. We will send a test train to Mpumalanga to see how that works.”

However, the arrangement is a cooperation between Exxaro with Transnet Freight Rail, a unit of Transnet, the state-owned transport company.

Eskom acknowledged in February that it would conduct an audit into design and operational faults at Medupi and Kusile, its new-build projects. The audit would include setting “realistic targets” on the date of the projects’ full commissioning.

Exxaro has a coal supply contract (CSA) to supply coal from its Grootegeluk-Medupi Expansion Project to Eskom’s Medupi. Previous commissioning delays on certain units at Medupi resulted in Exxaro implementing CSA addendums in which Eskom paid penalities for not buying coal.

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Posted By : Rabi Wangkhem on Mon, 18 Mar 2019
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