1 minute read
28 Nov 2014
11:45 am

Eskom signs coal agreement


Eskom has signed a memorandum of understanding (MoU) with Anglo American Inyosi Coal for coal supply to the Kusile power station, the power producer said on Friday.

Picture: Thinkstock

“The MoU is about how we co-operate to progress the economy and the country to a bright future,” Eskom CEO Tshediso Matona said in a statement.

“Eskom and Anglo American are key pillars of the South African economy and we therefore cannot fail the country.”

The MoU, which was signed last Friday, would see a conveyor running from a coal processing plant to the Kusile power station, which is under construction near eMalahleni, in Mpumalanga.

“The MoU paves the way for the two companies to negotiate and conclude the commercial and technical aspects of the project, while in parallel further engaging on the strategic empowerment imperatives and objectives to achieve the Public Finance Management Act conditions which were part of the approval process from the department of public enterprises,” Eskom said.

CEO of Anglo American’s coal business in South Africa and chairman of Anglo American Inyosi Coal, Themba Mkhwanazi, said the MoU came after months of negotiation.

“The purpose of this MoU is to affirm that, while both Anglo American Inyosi Coal and Eskom are broadly aligned regarding Eskom’s empowerment imperatives, we need to establish a framework within which we can co-operate and achieve a mutually beneficial outcome,” he said.