Johannesburg, South Africa — 11 September 2012 – Junior coal miner Wescoal Holdings has announced that it has signed a three-year supply deal with Eskom worth R700 million. The contract is retro-active to 1 June, 2012.
Miningmx reports that in terms of the transaction some 3.2Mt of coal will be supplied to Eskom from Wescoal’s Khanyisa and Intabane mines.
“Demand for coal in South Africa is massive; Eskom alone needs about 130Mt of coal each year to ensure stable power generation,” said Wescoal CEO Andre Boje.
“Our vision has always been to secure quality assets that will lead to increased productivity, thus ensuring we remain a reliable supplier to all clients, one of which is Eskom,” he added.
“The recent conclusion of a four-way multi-million rand deal with Xstrata is another step in ensuring that we increase coal output at Wescoal from the current 1.2Mt to 4Mt over the next four years,” he revealed.
“Eskom has previously raised concerns about the amount of coal being exported from South Africa to outside markets. However, Wescoal’s focus has always been to provide quality coal to the local inland market,” Boje said.
Source: Miningmx. For more information, click here.