The company will supply a total of 70,000 tonnes per annum of washed coal to a bio-ethanol plant in the Eastern Cape.
This project, which has been fully funded by South Africa’s Industrial Development Corporation, will generate its own power fuelled by the coal from Elitheni.
The coal supply deal has an initial term of 20 years, with an option to renew, resulting in an initial aggregate supply of 1.4 million tonnes to the project.
The coal supply is expected to begin in 2013, subject to the operational status of the project.
