BHPB signs MoU with Eskom

BHPB signs MoU with Eskom

BHP Billiton plc has signed a MoU with Eksom that could result in its Optimum coal mine exclusively supplying the South African power utility.

If the deal goes ahead, BHPB said it may sell off some of its export capacity at the Richards Bay Coal Terminal (RCBT).

BHPB has already signalled its intention to close another coal mine at Koornfontein.

“Accordingly, in the event of successful discussions with Eksom, BHP Billiton will sell around 6 Mt/y of its entitlement at RCBT in a phased manner, which will enable new entrants to gain access to the facility,” said a statement by the company.

BHPB holds a 40% stake in RCBT. The port has the ability to export 72 Mt/y of coal.

Coal shipments at the port are expected to increase to 92 Mt/y by 2008 at which point it will be the world`s largest.

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