Global Processing

Eskom says power stations have 5 days coal supply

March 10, 2008
Reuters is reporting that South African power utility Eskom''s 12 coal-fired power stations have at least five days of coal supply, the state-owned group said recently.

Eskom said in a statement it had made some progress in building coal stockpiles to 20 days'' supply after it said in January that it experienced problems with supply.

South Africa''s power crisis shut down the key mining industry for five days in January, driving precious metals prices higher and raising fears of possible job losses and slowing economic growth.

Eskom plans to secure an additional 45 million tonnes of coal over a two-year period and said on Saturday it had contracted 37 million tonnes and was in the process of contracting with coal transporters.

The power crisis is the result of many years of under-spending on generating capacity and has angered many.

Eskom plans to spend 343 billion rand ($42.70 billion) to increase its generating capacity over the next five years and has invited bids for a new nuclear power station.