Views Article – Sharenet Wealth

Australasia, News

Botswana’s private coal miner to double output if it wins Eskom contract, says CEO

GABORONE, Botswana Jan 22 (Reuters) – Botswana’s privately owned coal miner Minergy Ltd will double its output by opening a new mine if it wins a contract to supply coal to South Africa’s biggest power utility Eskom, its chief executive officer said in a statement on Friday.

Minergy was shortlisted to supply to Eskom’s Tutuka power station in South Africa in October 2020 and a due diligence process is currently underway.

“Minergy’s objective is to double production capacity… which would enable it to access a range of opportunities including increasing supply to industrial customers and export opportunities,” chief executive Morné du Plessis said, without giving any time frame for ramping up output from a new mine.

Du Plessis did not say when he expected Eskom to deliver its final decision on the contract.

He said higher output would enable Minergy to benefit from stronger prices for coal, which have gained due to rising demand from India and China’s ban on imports from Australia.

(Reporting by Brian Benza Editing by Promit Mukherjee & Simon Cameron-Moore)

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.