Skip to main content

Exxaro’s Thabametsi power project a preferred IPP bidder

Published by , Editor
World Coal,

The Minister of Energy recently announced that Exxaro Resouces Ltd’s Thabametsi power project has been selected as a preferred bidder in terms of the first bid window of South Africa’s coal baseload independent power producer procurement programme (CBIPPPP).

The coal-fired power plant will be built near Lephalale, Limpopo Province, adjacent to Exxaro’s existing Grootegeluk complex. It will produce 557.3 MW (net) of electricity for the national grid from coal supplied by phase 1 of Exxaro’s planned Thabametsi mine. Exxaro will be responsible for the supply of coal for a contractual period of 30 years.

Thabametsi mine phase 1 will be developed at a cost of R3 billion to supply approximately 3.9 million tpy of coal at full capacity. The new mine is scheduled to produce its first coal in 2020, in line with the development ramp-up schedule of the power plant, which is expected to be operational in 2021. Thabametsi’s development creates opportunities to supply coal to other coal IPPs in the Waterberg that could bid in window 2, as well as the mining of high value coal seams for the export market.

Mxolisi Mgojo, CEO of Exxaro Resources commented: “This is an exciting milestone for Exxaro and in realising our vision of creating jobs and powering economic development in South Africa. As the largest supplier of coal to Eskom, we are already integrated in South Africa’s energy value chain and look forward to being able take advantage of the opportunities provided by current regulatory developments in the mineral and energy sectors to develop a coal mine that can supply new power-generating capacity. We have played to our strength of coal production and partnered with competent entities such as Marubeni and KEPCO for the development of the power plant. We anticipate working closely with all the relevant authorities to make this project a success for the benefit of all in South Africa.”

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):