South African mining group Exxaro Resources and French independent power producer GDF Suez have signed an agreement to develop a 600-megawatt (MW) coal-fired power plant outside Lephalale in Limpopo province.
The proposed site is 17 kilometres northwest of Lephalale in the Waterberg region and adjacent to Exxaro’s Grootegeluk mine.
Fuel for the plant will be supplied by Exxaro’s prospective opencast greenfields Thabametsi mine on a surface conveyor belt.
It is expected that coal will be supplied to the plant for up to 25 years, as coal will continue to form a large part of South Africa’s energy mix.
“South Africa urgently requires the installation of additional electricity generation capacity in the near future due to the combination of a low reserve margin and growing electricity demand,” Exxaro said.