21.2.2008
13:45
Hwange to Export 45 Million Tonnes of Coal to SA
Hwange to Export 45 Million Tonnes of Coal to SA
JOHANNESBURG-SEVERE power failure that is currently wreaking havoc in South Africa's economy has forced the country's po
Eskom is to import more than 45 million tonnes of coal from Zimbabwe per annum. Due to the electricity crisis in South Africa, Eskom is set to fork-out a whopping R11 billion (about 800 million pounds) as an emergency move that is destined to lessen the outages.
According to Eskom Executive, Mr Brian Dames the 45-million tons would be enough to settle Eskom’s running requirements.
He argues that the amount of coal could be added systematically over the next two years in a bid to raise coal reserves at power stations to at least 20 days’ supply.
Eskom is presently importing Zimbabwe’s coal at a give away price of R100 per tonne. Under this price regime, Eskom would attain its desired 45-million additional tonnes from Hwange Colliery at the tune of R11 billion.
The power shortage in South Africa might in turn come as a huge sigh of relief to Hwange Colliery, the sole producers of coal in Zimbabwe that has been seriously experiencing viability problems owing to critical shortage of foreign currency.
Hwange Colliery has been battling for years now to source the much-needed foreign currency to source spare parts for its outdated machinery.
Zimbabwe is experiencing a biting shortage of foreign currency as reserves have dwindled in a development blamed on the President Mugabe administration’s land reforms, impractical revival plans as well as poor political and socio-economic policies
Post published in: News