Eskom to sell coal export capacity

18th January 2008 By: Matthew Hill

State electricity enterprise Eskom intends selling a large part of its export coal capacity in the expanded Richards Bay Coal Terminal (RBCT).

FD Bongani Nqwababa says that Eskom wants to dispose of half of its holding in the RBCT-linked South Dunes Coal Terminal as the asset is no longer core to Eskom, which is South Africa's largest domestic consumer of coal.

Xavier Prevost, energy consultancy Wood MacKenzie's coal analyst, does not expect Eskom to have any difficulty in finding a buyer. Several coal juniors have expressed a strong interest in acquiring coal export capacity at a time of record global coal prices.