Reuters reported that South Africa expects to sign long term supply contracts for its coal fired power stations including 2 new 4,800 MW plants, by the end of 2010.
Ms Barbara Hogan public enterprises minister of South Africa said that state power utility Eskom has commissioned the new Medupi and Kusile power stations as part of ZAR 385 billion expansion program to help meet rising demand in Africa's largest economy battling with power shortages.
She said that "It is expected that the long term contracts for the current fleet of coal fired power stations including Kusile and Medupi will be finalized by the end of 2010. Medium term contracts 5 years to 10 years are used to fill in the gaps."
Ms Hogan said that out of about 200 sources of coal less than ten offered more than the billion tonnes coal requested by Eskom which expected to invest up to ZAR 110 billion in coal mining by 2020 and dig at least 40 new mines in that time to meet growing demand.
