Under the terms of the deal, the partnership will supply coal from its Waterberg Coal Project in the Lephalale area of Limpopo, to two Eskom power stations in the Mpumalanga Province.
The Waterberg Coal Project consists of eight farms in the Waterberg coalfield with a proven JORC resource of 1.8 billion tonnes, spreading about 7,979ha.
Eskom’s two designated power stations in the Mpumalanga area will receive a minimum of 10Mt of thermal coal on a free on rail (FOR) basis annually from the JV.
The Waterberg project includes the construction of an opencast coal mine on the Smitspan farm along with infrastructure linking the mine to the Transnet rail system, the website said.
Coal production will begin in 2014, and production will be increased to 10Mtpa of coal over a period of five years.
