Anglo American plans $1bn 450 MW coal plant in South Africa

Anglo American plans to build a 450 MW coal power plant in South Africa to supply electricity to its platinum subsidiary Anglo American Platinum.

Quoting local media, Reuters reports that the head of the company's coal division in South Africa Norman Mbazima says that the plant would cost more than $1bn and that seven parties had bid to build the plant.

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.

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.

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