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Eskom, Anglo sign coal supply contract

World Coal,

Eskom and Anglo American Inyosi Coal have signed a Memorandum of Understanding (MoU) for the supply of coal to the Kusile power station currently under construction in Mpumalanga Province.

The MoU paves the way for the two companies to negotiate and conclude the commercial and technical aspects of the New Largo project, while further engaging on the strategic empowerment imperatives and objectives to achieve Public Finance Management Act conditions, which were part of the approval process from the Department of Public Enterprises.

Eskom CEO, Tshediso Matona said: "The MoU is about how we cooperate to progress the economy and the country to a bright future. Eskom and Anglo American are key pillars of the South African economy and we therefore cannot fail the country".

Matona commended both teams for their diligence and effort to achieve the key milestone of the signing of the MoU, reminding them that the actual work now begins in earnest.

CEO of Anglo American’s coal business in South Africa and Chairman of Anglo American Inyosi Coal, Themba Mkhwanazi added: "This MoU is a culmination of months of negotiations and enables the continued implementation of the New Largo project. 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."

Adapted from press release by Katie Woodward

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