Eskom may quit South Dunes

(Fin24) - Another large tranche of export entitlement through the Richards Bay Coal Terminal (RBCT) will soon become available for black empowered coal companies if Eskom Enterprises pulls out of the South Dunes Coal Terminal (SDCT).

Eskom Enterprises is a 50% shareholder in the SDCT which has a six million tonnes (Mt) entitlement to export through the RBCT in terms of its R1.2bn phase five expansion.

It is understood that Eskom is reviewing its participation in the SDCT and is likely to decide to opt out meaning its 3Mt entitlement will be up for grabs.

There should be no shortage of bidders for that entitlement. When the RBCT last year offered 9Mt/year of "subscription quota" coal in terms of the phase five expansion it received 26 applications for a total of 26.85Mt/year.

Of those, 18 applications totalling 19Mt met all the pre-qualification criteria but only eight companies were successful.

 

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