Anglo eyes SA power plant project

Johannesburg - Anglo American [JSE:AGL] plans to build a 450 MW power plant in South Africa to supply electricity to its platinum subsidiary Anglo Platinum [JSE:AMS], Business Day newspaper reported on Wednesday.

The paper quoted the head of the company’s coal division in South Africa Norman Mbazima as saying the plant would cost more than $1bn, and that seven parties had bid to build the plant near Witbank in eastern Mpumalanga.

The plant, which is expected to start producing electricity in 2015, would reduce Amplats' reliance of power supply from state-owned Eskom and cushion it from large price increases.

A spokesperson for Anglo Thermal Coal could not immediately be reached for comment.

South Africa has been struggling to meet demand for power as construction of new plants meant to plug the shortfall have been delayed. Supply will remain vulnerable until the first units of Eskom's new stations become operational next year.

Tony-Lapson 2012-04-11 10:43:07 AM
The cheapest option to maximize profits without a care for the environment or anything other than how much money can be made.
jeffrey.harmesson 2012-04-11 11:40:47 AM
How is it that Anglo American can propose to build a plant (in 2012) that they plan to have finished, functional and supplying power in 2015; yet Eskom can't build new plants and supply power to the country in 18 years as the national operator?
Richard Fahrenfort 2012-04-11 11:57:13 AM
I hope that it's going to be a cheap and clean molten salt florium reactor and not an expensive and dirty coal reactor!