Exxaro defends Eskom

Sneeky

Sneeky

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Sit down folks, more rocket science below :rolleyes:

Speaking to The Money Show on Thursday evening, Nkosi said, “We have had this challenge before but the rains we experienced this time round were quite severe.”

He says it is impossible to cover the millions of tons of coal Eskom is receiving at the same time.

“I think Eskom has done quite a lot in terms of putting a lot of covers and ensuring the coal they utilise, as they have been doing in the past, continued to be burnt when it’s dry.”

Nkosi says coal-burning countries experience a lot more rain for much longer periods withstanding such conditions because they are more equipped.

“They are more prepared than us. They have had this experience for many years.”
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and we don't have rain sort of ish like maybe, numbnuts

The CEO says there is sufficient coal to power South Africa for the next 200 years and Eskom just needs to be innovative in how it uses the fossil fuel.

“There are massive resources based in the Waterberg. Soutpansberg and the Free State also have resources we can utilise.”

Over 90 percent of the coal produced by Exxaro goes to Eskom, which in turn provides 95 percent of the country’s electricity.

Nkosi says Eskom wants coal to be declared a strategic resource so that certainty is guaranteed as far as supply is concerned.

“What worries Eskom is they know the current mines are coming to the end of their lives and we need to ensure coal is available so we continue having lights.”

He says the demand for coal has largely shifted from Europe to the Far East, from countries like India.

He says Exxaro will continue focusing on the East for exports because that’s where big growth is currently taking place.
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Looks like he is just punting coal nothing else.
http://ewn.co.za/2014/03/06/Exxaro-defends-Eskom
 
He doesn't say anything about exporting our high grade coal to other countries while we get the *** that gets wet.
 
To be fair the rain the country is getting at the moment + the amount of rain is very very unusual.
 
On SABC 3's news this evening it was mentioned that previously coal would be moved to the power plants by way of covered conveyor belts; a solution which apparently wasn't as prone to the problems being experienced currently.
Apparently somebody made a choice to switch to using smaller colleries from which coal is now transported only by road in open trucks, and therein apparently lies most of the problem.
Caught this just after it started so unfortunately I didn't catch the name of the guy they were interviewing.

This strange change sounds a lot like some type of ANC enrichment / corruption deal.
 
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Frikkenator said:
I don't know what it has been like in Durban but in Gauteng we've had double the average rainfall for March just in the first 6 days.

This is not normal, and it will lead to issues.
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Sneeky said:
Sit down folks, more rocket science below :rolleyes:


and we don't have rain sort of ish like maybe, numbnuts


Looks like he is just punting coal nothing else.
http://ewn.co.za/2014/03/06/Exxaro-defends-Eskom
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They want to regulate the coal price, and have eskom have first dibs.
DLK should have more information regarding this.

Striking miners have no idea what is coming if this happens. Our ecconomy will cry if this happens.
 
[)roi(];12236534 said:
Apparently somebody made a choice to switch to using smaller colleries from which coal is now transported only by road in open trucks, and therein apparently lies most of the problem.

This strange change sounds a lot like some type of ANC enrichment / corruption deal.
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The solution is called a tarpaulin.
 
The solution is not possible this is Africa.
 
The real issue is that the high grade was always exported and the lower grades used by Eskom.
Now the lower grades are being exported to India and Eskom get the dregs.

Factor into that poor management of the coal stocks, together with the worst coal dust sludge, no wonder Eskom can't produce power.
 
Albereth said:
Half the UK was under water and the lights stayed on. Not talking about damp.
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32% of the UK's electricity comes from coal, compared to 77% in SA, so a much smaller problem to manage.

Albereth said:
The solution is called a tarpaulin.
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I'm not sure if the problem comes in during transport or with stockpiling, but covering almost 100 million tonnes of coal a year is quite an effort.
 
Frikkenator said:
32% of the UK's electricity comes from coal, compared to 77% in SA, so a much smaller problem to manage.



I'm not sure if the problem comes in during transport or with stockpiling, but covering almost 100 million tonnes of coal a year is quite an effort.
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SA produces 34Gw, the UK does 57,5. Hardly a smaller problem.

The problem isn't that the coal gets wet during transportation. That's easy to solve by using a tarpaulin. The problem is that the stockpiles are too small again. The UK do not put their stockpiles under cover.

And there is an issue that trucks are being used rather than covered conveyors. Someone decided that saving money there would make for nice bonuses.
 
[)roi(];12236534 said:
Apparently somebody made a choice to switch to using smaller colleries from which coal is now transported only by road in open trucks, and therein apparently lies most of the problem..
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Vast majority of power station coal comes from Exxarro, Anglo Thermal Coal and BHP mines who use overland conveyor systems. The rest of the coal is sourced from small-junior miners who uses road trucks.
 
dlk001 said:
Vast majority of power station coal comes from Exxarro, Anglo Thermal Coal and BHP mines who use overland conveyor systems. The rest of the coal is sourced from small-junior miners who uses road trucks.
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Then there should be no wet coal excuse. They can go and dig some more dry coal up.
 
This load shedding crisis was not caused by the wet coal. It was caused because Eskom lost 4 generating units the night before of more than 2500MW total and therefore depleted all their pumped storage water reserves to meet demand. The wet coal is just an additional excuse that resulted in the working generators producing less than their peak power.

It's like saying that you were late for work because you put 93 petrol in your car instead of 95, when in actual fact your engine broke.
 
I just read a very interesting article on Bloomberg
Remember that controversial coal port they wanted to build in Australia, that was going to destroy a large part of the Great Barrier Reef?
Seems Anglo America, Rio Tinto and BHP Billington have all pulled out of the project, leaving only two Indian Billionaires still in the deal.

The reason given is a eye opener.
Anglo’s move comes as thermal coal prices trade close to September’s four-year low amid a global supply glut swollen by increased output from major producers including Glencore Xstrata Plc.

...

Glencore Xstrata (GLEN), the world’s biggest shipper of the fuel, last year halted work on the Balaclava Island export terminal also in Queensland, citing poor low coal prices, overcapacity and concerns about the medium-term outlook. Lend Lease Group, Australia’s biggest publicly traded property developer, last month said it wouldn’t take part in an expansion at Abbot Point after its mandate for the project lapsed.
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The main issue here is probably lack of Eskom stockpile buffer and management of the stockpile by Eskom. I suspect the former plays a significant role i.e. lack of stockpile buffer.

- In 2000, Eskom had 61-day coal stockpile average

- In 2001, it was down to 44-day coal stockpile average

- In 2006, Eskom noted that each power station now only targeted "a 20-day coal stockpile."

- In 2007, Eskom was running 18-day coal stockpile average. They were having problems with supply so much that Eksom had to buy coal on the spot market rather than using its existing supply contracts

- In 2008, Coal stocks were reported to be down to 4-6 day coal stockpile worth of consumption, compared with a 2006 target of 20 days. We all know what happened that year.

- In 2008, Myburgh resigned from Kumba, joined Eskom to help with supply efficiencies and stockpile management. By July, Eskom was averaging 24-day coal stockpile. By November, Eskom was averaging 30-day coal stockpile.

- In Jan/Feb 2013, rain affected some coal producing companies, but Eskom said "No problem, we have 46 days stock". No issues with wet coal stockpiles or transportation.

- In Feb/Mar 2014, rain affected some coal producing companies but Eskom says "wet coal"

So, what's the real problem in 2014? Wet coal? I doubt so. Its possible that Eskom is back to stockpiles below critical levels
 
dlk001 said:
The main issue here is probably lack of Eskom stockpile buffer and management of the stockpile by Eskom. I suspect the former plays a significant role i.e. lack of stockpile buffer.

- In 2000, Eskom had 61-day coal stockpile average

- In 2001, it was down to 44-day coal stockpile average

- In 2006, Eskom noted that each power station now only targeted "a 20-day coal stockpile."

- In 2007, Eskom was running 18-day coal stockpile average. They were having problems with supply so much that Eksom had to buy coal on the spot market rather than using its existing supply contracts

- In 2008, Coal stocks were reported to be down to 4-6 day coal stockpile worth of consumption, compared with a 2006 target of 20 days. We all know what happened that year.

- In 2008, Myburgh resigned from Kumba, joined Eskom to help with supply efficiencies and stockpile management. By July, Eskom was averaging 24-day coal stockpile. By November, Eskom was averaging 30-day coal stockpile.

- In Jan/Feb 2013, rain affected some coal producing companies, but Eskom said "No problem, we have 46 days stock". No issues with wet coal stockpiles or transportation.

- In Feb/Mar 2014, rain affected some coal producing companies but Eskom says "wet coal"

So, what's the real problem in 2014? Wet coal? I doubt so. Its possible that Eskom is back to stockpiles below critical levels
Click to expand...

So how could Eskom have a low stockpile if there is a oversupply of coal and a 4 year price low?
 
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