Pressure on Eskom as mines down shovels

[miningmx.com] – PRESSURE was heaped on Eskom which is struggling with a mere 2% of reserve capacity after labour at two coal mines that provide about 10% of its coal requirements went on strike.

Speaking to BDLive, Mxolisi Mgojo, head of Exxaro Resources’ coal business, said the biggest challenge was at Matla while workers at Arnot coal mine also went on strike – apparently on issues regarding the payment of bonuses.

At Matla we have the biggest challenge,” Mgojo told BDLive. “The mine is the sole supplier to the power station and due to logistical issues, the company would not be able to source the coal from third parties,” he said.

Exxaro’s Arnot mine has 19 days worth of stockpiles remaining while the power station had some 50 stock days of coal, according to Eskom spokesperson, Hilary Joffe who added it would continue to receive coal deliveries by road.

Matla power station — with 30 days of stock — was, however, closed for coal deliveries. “Eskom is in close contact with Exxaro on the issues . A prolonged strike could have a negative effect on generation capacity,” she said.

Matla produces 12 million tons (Mt) of coal a year on average for Eskom’s Matla power station — which has an installed capacity of 3,600MW — while Arnot mine produces about 2.2Mt on average for the 2,100MW Arnot power station.