S.Africa's Eskom and Transnet in talks on coal supplied by rail

CAPE TOWN, Feb 5 (Reuters) – South Africa’s heavily indebted state power firm, which is struggling to keep the nation supplied with power, is in talks with Transnet to increase the tonnage and lower the price of coal transported by rail, the state logistics firm said.

Eskom, which has been trying to procure coal at the right price and quality, has regularly cut power supplies in the past year because of unreliable coal-fired plants.

“The opportunity here is to work at the quality of coal and the sourcing of coal from the right mines to the right power stations,” Transnet chief customer officer, Mike Fanucchi, told reporters on the sidelines of the mining Indaba conference in Cape town.

Transnet, which operates much of Africa’s rail network, the bulk of it in South Africa, aims to move 11.5 million tonnes of coal in the financial year starting in April this year and 14 million tonnes in the following year.

Reporting by Tanisha Heiberg; Editing by Edmund Blair

Source: © 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. “Reuters” and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.

Follow us:
Visited 11 times