Page 7 - AfrElec Week 05 2021
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AfrElec COAL AfrElec
Exxaro to stop investing in
new coal production
POLAND SOUTH Africa’s Exxaro Resources is to stop province in 2019.
investing in new thermal coal assets, although It began seeking investment opportunities in
it will continue to produce and supply coal for water, food security and cleaner energy in 2017
domestic and international customers, chief and has already put up some of its coal assets for
executive Mxolisi Mgojo said. sale as part of a strategic review of its portfolio.
“As we come to the end of life of our other coal Exxaro completed its acquisition of South
reserves, we will not be building any new ones,” African renewable independent power producer
Mgojo said at the virtual African Mining Indaba (IPP) Cennergi in 2020. At the time, the firm said
conference, Reuters reported. that the acquisition was aligned to its response
Exxaro, which exports coal as well as sup- to “increasing negative sentiment towards coal-
plying it for domestic power generation, said based electricity generation”.
the company would continue to provide ther- Exxaro has also said that it wants to reduce
mal coal to state-owned power utility Eskom’s its coal resources by 22% and has committed to
Medupi and Matimba power stations through being carbon neutral by 2050.
its coal contracts. South Africa, Africa’s biggest greenhouse gas
“A big concern [when] disposing of one’s (GHG) emitter, gets most of its power from coal-
coal assets [is that] they may land in the hands fired power stations run by Eskom, but plans to
of parties who may not want to act responsibly move towards a more diversified mix of genera-
in terms of how they treat the environment and tion sources.
other aspects of ESG,” said Mgojo. Despite mounting pressure to try to halt
“So for now, we will hold on to our existing climate change, moving to renewable energy
coal assets, but we will not be building any new sources is seen as sensitive in a country in which
ones,” he added. mining is a major employer.
Exxaro, which also has interests in mineral The South African coal industry employed
sands, iron ore and energy, has sought opportu- more than 94,000 people in 2019 out of a total of
nities in greener energy and acquired full own- around 460,000 employees across the industry.
ership of two wind farms in the Eastern Cape
INVESTMENT
EBRD injects $361mn into Tunisian
gas and power utility
TUNISIA THE European Bank for Reconstruction and €200mn facility helping refinance STEG’s short
Development (EBRD) is providing €300mn and medium-term liabilities. In addition, the
($361mn) financing package to Societe Tunisi- European Union will provide an investment
enne de l’Electricite et du Gaz (STEG), the grant of up to €20mn to finance the implemen-
state-owned national electricity and gas utility, tation of an enterprise resource planning system
to support the stability of Tunisia’s energy sector to help STEG’s modernisation plans.
during the coronavirus (COVID-19) pandemic Established in 1962, STEG produces and dis-
in the medium term. The aim of the programme tributes electricity and natural gas. Its involve-
is to help the company draw-up a detailed ment in the natural gas business is limited to gas
roadmap for reform and energy sustainability. distribution and gas-fired electricity generation.
The financing facility comprises a €100mn STEG is also the sole off-taker of private renew-
emergency stabilisation facility under EBRD’s able energy in Tunisia.
Vital Infrastructure Support Programme and a
Week 05 04•February•2021 www. NEWSBASE .com P7
