Kumba is to produce more coal for new power drive
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KUMBA Resources is expecting a big boost to its coal operations after last week`s news of government plans to invest R165bn in infrastructure, including building new power stations.
CE Con Fauconnier said yesterday that a R91m expansion plan had just been approved at the Leeuwpan mine in Mpumalanga, to boost output from 1,7million tons a year to 2,7-million tons for supply to Eskom`s Majuba power station.
Meanwhile, a R320m expansion of the Grootegeluk coal processing plant in Limpopo, which has also just been approved, will boost the supply of coking coal to Ispat Iscor by 700000 tons a year, boosting output from Grootegeluk to 2,5million tons a year. Grootegeluk is already the world`s largest coal processing plant, and this will be the sixth expansion of the coal processing facility.
Kumba`s coal expansion in SA followed an announcement last week that Kumba and its parent Anglo American are to pool their coal assets in Queensland, Australia, to raise output.
`Grootegeluk is the lowest cost coal supplier in SA, and for that reason this makes us very suitable for further expansion, and we continue to talk to Eskom,` said Fauconnier. E xpansion could be possible by increasing Grootgeluk`s size.
He welcomed public enterprises minister Alec Erwin`s announcement that the state would make more funds available for power generation in SA.
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