Anglo American’s South African black empowerment company, Anglo American Inyosi Coal, has signed a memorandum of understanding (MoU) with state-owned utility Eskom to supply coal from its New Largo project to the Kusile power plant near eMalahleni in the Mpumalanga Province.
The Kusile plant is currently under construction. When finished, the plant will consist of six 800 MW coal-fired units for a total plant capacity of 4.8 GW, making it one of the largest coal-fired power plants in the world.
"The MoU is about how we cooperate to progress the economy and the country to a bright future,” said Tshediso Matona, Eskom’s CEO. “Eskom and Anglo American are key pillars of the South African economy and we therefore cannot fail the country".
"This MoU is a culmination of months of negotiations and enables the continued implementation of the New Largo project,” commented Themba Mkhwanazi, CEO of Anglo American’s coal business in South African and chairman of Anglo American Inyosi Coal. “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."
Anglo American Inyosi Coal in 73% owned by the global mining company with the remaining 27% held by Inyosi Coal, a BEE consortium led by the Pamodzi Coal and Lithemba consortia (66%), with WDB Inyosi Investments and AIC Community Trust holding the remaining equity. The company owns Kriel coal mine, the new Zibulo multiproduct mine and the greenfield projects of Elders, New Largo and Heidelberg.
Written by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/power/01122014/world-coal-anglo-american-inyosi-coal-to-supply-eskom-coal1625/