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Eskom signs coal supply agreement with Arnot mine

Eskom signs coal supply agreement with employee-owned Arnot mine for supply of coal to Arnot Power Station

Eskom is pleased to announce that it has entered into an agreement with Arnot OpCo (Pty) Ltd for the supply of coal for the Arnot Power Station. In terms of the agreement, Arnot OpCo will supply the full coal requirement for the life of Arnot Power Station. The coal qualities is coal of high quality, and if the need arises, it may be used at other stations. The coal qualities are for coal of high quality, and if the need arises, it may be used at other stations. The contract has an exit clause after Year 6 that may allow both parties to cancel the contract.  The agreement serves to secure coal supply and to meet the burn requirements of the power station by conveyor belt, replacing the current supply by road from various sources on short- to medium-term contracts, some of which were signed under emergency and urgent procurement. This transaction paves way for Eskom to reduce the costs of operating the Arnot Power Station while securing high quality coal at affordable prices.

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