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Coal & Diesel News

Sanral rehabilitation project derisks Uitenhage power failures 

By: Megan van Wyngaardt     17th January 2017 The completion of an R80-million slope stabilisation engineering project in Nelson Mandela Bay metropolitan region, in the Eastern Cape, has prevented the risk of damage to power cables and related blackouts in Uitenhage. The South African National Roads Agency Limited (Sanral) said on Tuesday... 

Astral says Eskom cutting municipal electricity supply would be ‘catastrophic’ for Standerton operations 

By: Megan van Wyngaardt     13th January 2017 Eskom’s plan to cut power to the Lekwa local municipality, in Mpumalanga, will interrupt poultry producer Astral’s feed and poultry operations in Standerton with “catastrophic” results, the company has warned. Astral has received notification that Eskom plans to start interruptions of its bulk... 

Astral says Eskom cutting municipal electricity supply would be ‘catastrophic’ for Standerton operations

Trial mining starts at Edenville’s Rukwa coal project

By: Megan van Wyngaardt     12th January 2017 Trial mining has started at Edenville Energy’s 120 MW Rukwa coal-to-power project, in Tanzania. The project hosts 171-million tons of measured and indicated coal, sufficient to support a power station over a 30-year project life. 

Shumba, HMS Bergbau sign exclusive marketing agreement

By: Megan van Wyngaardt     10th January 2017 Botswana-based energy development company Shumba Energy has signed a binding memorandum of understanding (MoU) with HMS Bergbau Africa, a subsidiary of German trading house HMS Bergbau. Under the terms of the agreement, the latter will be responsible for the exclusive marketing of all export... 

Shumba, HMS Bergbau sign exclusive marketing agreement

DoE extends comment period for energy plans to end of March 

By: Terence Creamer     9th January 2017 The Department of Energy (DoE) has formally extended the period for public comment on the draft Integrated Energy Plan (IEP) and the draft Integrated Resource Plan (IRP) base case until March 31. The closing date for written comment was initially set as February 15, after the two plans were... 

DoE extends comment period for energy plans to end of March

Kibo Mining unfazed by management restructuring at Tanzanian Electric Supply Company

By: African News Agency      5th January 2017 Kibo Mining has said that it was not fazed by the ongoing changes and restructuring at the Tanzanian Electric Supply Company (Tanesco) which were seen as threatening to its Mbeya Coal to Power Project (MCPP). This comes after Tanzania president John Magufuli promptly sacked Tanesco MD Felchesmi... 

Kibo Mining unfazed by management restructuring at Tanzanian Electric Supply Company

South Africa's Eskom to meet coal supplier over drop in black ownership

By: Reuters     4th January 2017 South Africa's state-owned power producer Eskom will meet with Exxaro Resources after the coal producer approved a transaction that will see its black ownership drop to 30% from over 50%, the utility said on Wednesday. The diversified miner said in November it planned to replace its existing... 

South Africa's Eskom to meet coal supplier over drop in black ownership

Eskom’s excess generation capacity builds as Kusile Unit 1 ties-in to national grid 

By: Henry Lazenby     28th December 2016 South Africa’s electricity utility Eskom has connected the first power-generating unit of the new Kusile coal-fired power station, in Mpumalanga; reaching the milestone ahead of schedule and adding 800 MW to further stabilise the energy grid. In a statement Tuesday, Eskom said it is making... 

Eskom’s excess generation capacity builds as Kusile Unit 1 ties-in to national grid

Kibo secures $2.9m forward payment facility for Mbeya project

By: Ilan Solomons     21st December 2016 Tanzania-focused mineral exploration and development company Kibo Mining has entered into a binding term sheet with UK-based private equity provider Sanderson Capital Partners for a new $2.9-million forward payment facility. The facility provides for Kibo to be advanced part of the $3.6-million... 

Kibo secures $2.9m forward payment facility for Mbeya project

Medupi’s second unit powered for first time, generates 796 MW

By: Ilan Solomons     20th December 2016 State-owned power utility Eskom revealed on Tuesday that the second unit of its Medupi coal-fired power station, in Limpopo was loaded to full capacity over the weekend and generated 796 MW of electricity. Eskom interim CE Matshela Koko said that this was Medupi’s most “significant achievement”... 

Medupi’s second unit powered for first time, generates 796 MW

Kibo signs EPC contract with Sepco III

By: Megan van Wyngaardt     19th December 2016 Following months of talks, dual-listed Kibo Mining has awarded the engineering, procurement and construction (EPC) contract for its Mbeya coal-to-power project (MCPP), in Tanzania, to Shandong Electric Power Construction Corporation III (Sepco III) Kibo CEO Louis Coetzee on Monday said the... 

Kibo signs EPC contract with Sepco III

Edenville Energy mulls most viable power plant route

By: Natasha Odendaal     14th December 2016 A host of proposals from various engineering, procurement and construction (EPC) companies has enabled Edenville Energy to carefully review options for the most financially viable route to build a power plant at its Rukwa coal-to-power project, in Tanzania. The group on Wednesday said several... 

Zambia eyes energy diversification, reviews South Africa's progress

By: Natasha Odendaal     9th December 2016 Zambia has started reviewing its options to reverse the country's current energy constraints and diversify its own energy mix, leaving no viable potential initiatives off the table as it seeks to become a "power trader". The mostly hydropowered Southern African country is currently battling... 

Zambia eyes energy diversification, reviews South Africa's progress
Zambian President Edgar Lungu

DoE urged to re-run IRP base case without ‘artificial constraints’ 

By: Terence Creamer     8th December 2016 A call has been made for the Integrated Resource Plan (IRP) base case to be re-run in order to generate a “least-cost” outcome that is free from the “artificial constraints” imposed on renewable energy in the current draft. The base case, published by the Department of Energy (DoE) on November... 

DoE urged to re-run IRP base case without ‘artificial constraints’

Public consultations for IRP, IEP get under way as DoE attracts criticism over timelines, pricing basis 

By: Natasha Odendaal     7th December 2016 Planned nationwide public consultations got under way in Boksburg on Wednesday for the Department of Energy’s (DoE’s) long-awaited draft Integrated Energy Plan (IEP) and updated Integrated Resource Plan (IRP), drawing some industry criticism regarding timelines and an outdated pricing structure.... 

Public consultations for IRP, IEP get under way as DoE attracts criticism over timelines, pricing basis

KZN turns sod on R85bn privately owned coal power station 

By: African News Agency      6th December 2016 KwaZulu-Natal Premier Willies Mchunu on Tuesday said he was confident that the R85-billion investment to build a smelter park would usher in a new era characterised by employment and prosperity in the province. The CS Smelter Park, an investment made through the Brics countries, is earmarked to... 

Kibo receives integrated draft financial model for MCPP

By: Anine Kilian     1st December 2016 Tanzania-focused mineral exploration and development company Kibo has received an advanced draft of the integrated financial model for the Mbeya coal-to-power project (MCPP) from its financial advisers, Absa/Barclays. The model will be the subject of extensive review and further adjustment, based... 

Brown says current power build ‘trajectory’ may be detrimental to consumers 

By: Terence Creamer     30th November 2016 Public Enterprises Lynne Brown says that South Africa is currently adding electricity capacity to the grid at rate higher than what is required and argues that the “current trajectory” could be detrimental to consumers. She asserts, therefore, that it is “critical that the Integrated Resource... 

Brown says current power build ‘trajectory’ may be detrimental to consumers
Photo by Duane Daws
Public Enterprises Minister Lynne Brown

S&P's downgrades Eskom further into junk territory

By: Reuters     25th November 2016 Standard & Poor's Global Ratings on Friday cut South African power utility Eskom's credit rating a further notch into subinvestment, raising concerns the country's sovereign rating would also be dragged into junk status. S&P's, which has South Africa's debt on the lowest investment level with a... 

S&P's downgrades Eskom further into junk territory
Photo by Duane Daws
CFO Anoj Singh

Exxaro confident Eskom contracts safe, despite BEE ownership decreasing to 30%

By: Ilan Solomons     25th November 2016 Diversified miner Exxaro Resources has assured investors that despite its black ownership falling below the 51% required by State-owned power utility Eskom for all its supply contracts, this will not affect its existing supply contracts with the utility. The company is set to introduce a new... 

Exxaro confident Eskom contracts safe, despite BEE ownership decreasing to 30%
Photo by Duane Daws
Exxaro CEO Mxolisi Mgojo

Dismissive of 2037 nuclear timeline in IRP base case, Eskom to release RFP by year-end 

By: Terence Creamer     22nd November 2016 State-owned power utility Eskom indicated on Tuesday that it planned to move ahead with a controversial request for proposals (RFP) for nuclear before the end of 2016, despite the base case in a draft Integrated Resource Plan (IRP) update indicating that the first reactor would only be required... 

Dismissive of 2037 nuclear timeline in IRP base case, Eskom to release RFP by year-end
Energy Minister Tina Joemat-Pettersson

Kibo, GE sign collaboration agreement

By: Anine Kilian     21st November 2016 Tanzania-focused mineral exploration and development company Kibo Mining has signed a collaboration agreement with General Electric International (GE), which will supply equipment, technology and services to the Mbeya coal-to-power project (MCPP) power plant. GE will also assist Kibo in... 

Brown to make new Eskom board proposals to Cabinet after Pamensky quits

By: Terence Creamer     16th November 2016 Public Enterprises Minister Lynne Brown says she intends submitting recommendations to Cabinet soon regarding the strengthening the Eskom Board, after confirming that she had accepted Mark Pamensky request to step down. Pamensky’s resignation follows days after CEO Brian Molefe announced that he... 

Brown to make new Eskom board proposals to Cabinet after Pamensky quits
Photo by Duane Daws
Public Enterprises Minister Lynne Brown

ACWA Power to reassess bullish South Africa stance should Redstone collapse 

By: Terence Creamer     15th November 2016 The head of Saudi Arabian electricity group ACWA Power says that, while the company remains a patient investor in South Africa, the outcome of the current impasse with Eskom relating to its 100 MW Redstone concentrated solar power (CSP) project will be critical to the group’s future investment... 

ACWA Power to reassess bullish South Africa stance should Redstone collapse
ACWA Power CEO Paddy Padmanathan

Sarec too raises IPP delay concerns

By: Natasha Odendaal     9th November 2016 The South African Renewable Energy Council (Sarec) has become the latest organisation to raise concerns over State-owned power utility Eskom’s repeated delays in signing off on new power purchase agreements (PPAs) with independent power producers (IPPs). In a response statement to the disclosures... 

Coal should not be removed from South Africa’s energy mix – Jeffrey

By: Natasha Odendaal     8th November 2016 Eliminating coal-fired power generation from South Africa's energy mix will be detrimental to the country's economy, says Econometrix MD and senior economist Robert Jeffrey. Speaking at the 2016 Southern African Energy Efficiency Convention, in Kempton Park, on Tuesday, he suggested that coal... 

Universal signs coal supply deal with Eskom

By: Esmarie Swanepoel     8th November 2016 Coal miner Universal Coal has signed a coal supply agreement with South African State-owned electricity provider Eskom that will enable openpit production from the New Clydesdale colliery (NCC), near Middelburg, in Mpumalanga, to start. Universal will supply Eskom with 1.2-million tonnes a year... 

Universal signs coal supply deal with Eskom

Eskom ‘sets the record straight’ on its dealings with Glencore 

By: African News Agency      7th November 2016 Recent media reports quoting Glencore as vehemently denying it had ever proposed coal price increases of more than R300/t to Eskom “cannot go unchallenged”, the electricity parastatal said on Sunday. “It is unfortunate that Glencore has suggested that Eskom has lied about Optimum Coal Mine... 

Glencore lashes out at Eskom over coal claims

By: News24Wire      7th November 2016 Glencore has rejected allegations by Eskom CEO Brian Molefe that it sold the parastatal coal at exorbitant prices. Molefe accused Glencore of previously trying to sell coal to Eskom at a rate of R570 per tonne, when he said the price should have been below R200. 

Eskom board still considering whether to take State of Capture report on review 

By: Terence Creamer     4th November 2016 The Eskom board reported on Friday that it was taking legal advice on “inconsistencies” in the Public Protector’s ‘State of Capture’ report, including whether or not to take the report on legal review. The board also insisted that all directors had declared conflicts of interest, complied with... 

Eskom board still considering whether to take State of Capture report on review
Eskom board member Dr Pat Naidoo

Eskom in desperate search for industrial customers as surplus grows 

By: Terence Creamer     4th November 2016 Amid weak economic growth, falling industrial and mining demand and a rise in plant availability, Eskom has appealed to industrial customers to approach it for new connections, saying it is “open for business”. The State-owned utility announced a recovery in the energy availability factor (EAF)... 

Eskom in desperate search for industrial customers as surplus grows

Emotional Molefe weighs judicial review and future after damning Public Protector report  

By: Terence Creamer     3rd November 2016 Eskom CEO Brian Molefe has indicated that he is weighing his future options as head of the State-owned electricity producer following the release of a Public Protector report, which raises serious questions about his role in facilitating a coal deal involving Tegeta, a mining company linked to... 

Emotional Molefe weighs judicial review and future after damning Public Protector report
Eskom CEO Brian Molefe outlines his unhappiness with the Public Protector's State of Capture report. Camera Work and Editing: Nicholas Boyd. 3.11.2016

Eskom's Molefe implicated in 'state capture' report

By: News24Wire      2nd November 2016 Former public protector Thuli Madonsela's long-awaited state capture report includes damning details on the relationship between Eskom CEO Brian Molefe and the controversial Gupta family. Molefe and Ajay Gupta, the eldest of three Gupta brothers, made 58 telephone calls to one another between... 

Eskom's Molefe implicated in 'state capture' report
Photo by Duane Daws
Eskom CEO Brian Molefe

Edenville COO announces resignation

By: Anine Kilian     2nd November 2016 Dual-listed Edenville Energy COO Mark Pryor has resigned and will be replaced by CEO Rufus Short in the interim. Pryor has also stepped down from the board with immediate effect. 

Mahindra SA to add generator sets to its product portfolio

By: Irma Venter     25th October 2016 Vehicle distributor Mahindra South Africa (SA) will add another product to its portfolio in November, when the company will introduce a range of generator sets (gensets) to the local market. Mahindra SA is a subsidiary of the Indian Mahindra & Mahindra conglomerate. 

Mahindra SA to add generator sets to its product portfolio
Mahindra will start sales of gensets by the end of the year

World Bank raises 2017 price outlook for oil and metals 

By: Terence Creamer     20th October 2016 The World Bank has increased its 2017 price outlook for both metals and oil in its latest ‘Commodity Markets Outlook’, raising its October forecast for crude oil to $55/bl, from $53/bl in July. It has, however, sustained its forecast for an average oil price of $43/bl in 2016. Energy prices,... 

World Bank raises 2017 price outlook for oil and metals

Nersa awaits RCA appeal before moving on new Eskom applications

By: Terence Creamer     19th October 2016 The National Energy Regulator of South Africa (Nersa) expects its application for leave to appeal a recent North Gauteng High Court judgment, which found its approval of Eskom’s third multiyear price determination (MYPD3) Regulatory Clearing Account (RCA) for the 2013/14 to be unlawful, to take... 

Nersa awaits RCA appeal before moving on new Eskom applications
Photo by Duane Daws
Nersa regulator Thembani Bukula
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