JOHANNESBURG, April 11 (Reuters) – Anglo American
plans to build a 450 MW power plant in South Africa to supply
electricity to its platinum subsidiary Anglo American Platinum
, the Business Day newspaper reported on Wednesday.
The paper quoted the head of the company’s coal division in
South Africa Norman Mbazima as saying the plant would cost more
than $1 billion and that seven parties had bid to build the
plant near Witbank in eastern Mpumalanga province.
The plant, which was expected to start producing electricity
in 2015, would reduce Amplats’ reliance of power supply from
state-owned Eskom and cushion it from large price increases.
A spokesman for Anglo Thermal Coal could not immediately be
reached for comment.
South Africa has been struggling to meet demand for power as
construction of new plants meant to plug the shortfall have been
delayed. Supply would remain vulnerable until the first units of
Eskom’s new stations become operational next year.
(Reporting by Olivia Kumwenda, editing by Ed Stoddard)
© Thomson Reuters 2012 All rights reserved
