Anglo eyes SA power plant project

2012-04-11 10:06

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.