Exxaro asked to ‘redirect’ coal from Limpopo to Mpumalanga

They used to supply coal to Medupi power station but because of technical problems there they will now supply to this side.

Mining company Exxaro has reportedly been asked by Eskom to redirect from Limpopo to Mpumalanga.

They have been asked to redirect from the Waterberg region to Mpumalanga, according to Exxaro’s Nombasa Tsengwa.

She said their contract with Eskom was “clear” and allowed them to “redirect”.

“We have got clear remedies in our contracts which allow us to re-direct coal to Matimba [power station, near Lephalale in Limpopo province] and take-or-pay,” she said.

“But Eskom asked us to redirect coal from the Waterberg to Mpumalanga and we are helping them in this regard,” Tsengwa said.

She said Exxaro will be sending “a test train to Mpumalanga to see how that works.

The arrangement is a cooperation between Exxaro and Transnet, she said.

Tsengwa commented after the publication of Exxaro’s full-year results this week in which profits before interest, tax, depreciation and amortisation increased marginally to R7.28bn.

Eskom acknowledged in February that it would conduct an audit into design and operational faults at Medupi and Kusile, its new-build projects.

Technical faults at Medupi power station in Limpopo have resulted in Eskom not buying coal from Exxaro, forcing the mining company to slap the state utility with penalties.

Now they will supply to Mpumalanga power stations while problems at Medupi are being fixed.

(edited by ZK)

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