By DPA
Johannesburg : Anglo-Australian mining giant Rio Tinto said Wednesday that it has discovered around 1 billion tonnes of coal deposit in South Africa’s Limpopo province and was in talks with the country’s electricity supplier Eskom about supplying it with coal.
Eskom gets most of its power from 10 coal-fired power plants. In recent weeks coal shortages and poor coal quality have wrought havoc with output, exacerbating an energy crisis caused by the utility’s shortage of generating capacity.
Homes, businesses and industry across South Africa have been plagued by rolling blackouts for over three weeks.
Rio Tinto said the coal found as part of an exploration programme in Limpopo was thermal coal, which is suitable for generating electricity.
The exploration rights are jointly held by Chapudi Coal, which is 70 percent owned by Rio Tinto and Kwezi Mining Exploration, in which it has a 49 percent share.
The discovery came “at a time when South Africa needs to rapidly increase its generating capacity,” chief executive of Rio Tinto Energy and Minerals, Preston Chiaro, said.
To boost supply Eskom is restarting three previously mothballed coal-fired plants and building another, due to come online in 2011, among other measures.
Rio Tinto said it was also in talks with independent power producers about the coal find.