Exxaro’s Grootgeluk
coal mine
Pretoria, South Africa — 16 July 2013 – Diversified South African-based mining group Exxaro Resources Limited and France’s GDF SUEZ “’ a global leader in independent power production “’ have concluded a project development agreement and a coal supply term sheet for a 600MW coal-fired power plant in the Limpopo province of South Africa.

“Following a selection process, Exxaro selected GDF SUEZ for the development of a 600MW coal-fired power station in the Waterberg region of the Limpopo province,” said a company statement released here. The proposed development site, 17 km north-west of Lephalale, is located adjacent to Exxaro’s Grootegeluk coal mine.

“The fuel for the new station will be supplied from Exxaro’s Thabametsi mine, a prospective opencast greenfields mine, via a surface conveyor belt. The mine will supply up to 3.8Mtpa of run-of-mine coal to the power plant post ramp-up. A conventional truck and shovel method of operation will be utilised for the mining operations,” the statement added.

The period of the coal supply will be determined by the duration of the power purchase agreement, but is anticipated to be up to 25 years. Coal will continue to be a significant part of South Africa’s energy mix even though the Department of Energy’s Integrated Resource Plan for Electricity 2010 to 2030 (IRP) sees renewable energy making up 42% of all new electricity generation capacities in South Africa over the next 20 years.

“The total capacity of the plant could be expanded to circa 1,200 MW, depending on the availability of water and on grid integration constraints,” the statement continued. South Africa urgently requires the installation of additional electricity generation capacity in the near future due to the combination of a low reserve margin and growing electricity demand. GDF SUEZ and Exxaro are global leaders in their respective industries and are pleased to be able to combine their strengths to positively impact the baseload power generation capacity, with the aim of assisting in alleviating South Africa’s power supply challenges.

The CEO and president of GDF SUEZ Energy South Asia, Middle East & Africa, Shankar Krishnamoorthy, commented: “This agreement is not only good news for us, but also for the country. Successful public-private partnerships in the power sector will contribute to the adequacy and efficiency of South Africa’s electricity industry.”

Exxaro CEO Sipho Nkosi said: “This is an exciting milestone for Exxaro We anticipate working closer with all the regulatory authorities to making this project a success for the benefit of all in South Africa.”

Source: Exxaro Resources Limited. For more information, click here.