- Eskom signs coal agreement with Arnot OpCo Ltd
Eskom has announced an agreement with Arnot OpCo Ltd to supply coal to Arnot Power station in Mpumalanga province. According to the agreement, Arnot OpCo will secure coal supply to the plant, meet the burn requirements by conveyor belt, and replace the current supply from various sources on short to medium-term contracts. The agreement signed by both parties will last for the life duration of the plant; however, there a is six-year exit clause for both parties.
”The coal is of high quality, and if the need arises, it may be used at other stations,” Eskom said in a statement.
Eskom General Manager for Primary Energy, Sandile Siyaya, said ”While securing affordable coal supply for the Arnot Power Station, this transaction will help create employment opportunities for the retrenched Arnot Mineworkers and entrepreneurship opportunities for the Middleburg community.”
Arnot OpCo Ltd is half-owned by ex-employees of Exxaro Resources, who were retrenched in 2015.