South African state utility Eskom is having to buy more raw, unwashed export coal on a spot basis because much of its newly-rebuilt stocks are powdered fines difficult to handle.
Eskom has been battling a power supply crisis that has hit the country's lifeblood mining industry and caused blackouts. Eskom has during the past month been buying crushed run-of-mine (ROM) coal at just under R300 a tonne free-on-truck to blend with fines making them useable. Eskom has signed new term contracts in the past two months at around R150 a tonne FOT, double last year's contract price. A high proportion of fines delivered to the plants would leave Eskom little option but to buy ROM coal at market value in order to sweeten the blend and ensure maximum power generation round the clock. Eskom has also bought a small amount of washed, export coal at around R600 a tonne FOT, where ROM has not been immediately available, according to one mining source. Earlier this week, Eskom spokesman Andrew Etzinger acknowledged that the utility had experienced difficulty handling and burning fine coal over the past few years. This remains a problem for Eskom, he said. "It's as much an issue of quality as quantity," he said. Coal mining companies have pledged an additional 5.4 million tonnes to Eskom for delivery within the next couple of months and this coal is starting to be moved. The majority of large and small coal producers have stepped up deliveries to Eskom during the past few weeks and are delivering coal of the size and quality sought by the utility.
Read More
No comments:
Post a Comment