Eskom says South Africa should be closed for new big industrial projects at least until 2013, when electricity supply is expected to improve.
Bongani Nqwababa, Eskom's finance director, said yesterday that the parastatal had advised the government that it wanted South Africa marketed only from 2013 for both local and foreign projects. It was inappropriate to advertise South Africa as an investment destination with low-cost electricity. "You don't sell what you don't have."
He warned that the Rio Tinto Alcan aluminium smelter in the Coega industrial development zone could be delayed. "Eskom needs to review supply to Coega." Other projects, such as BHP Billiton's plans to expand, were on the back burner.
When Eskom and Alcan had signed a 25-year power supply agreement in November 2006, both made commitments that, if reneged on, would incur penalties. Nqwababa said: "There must be penalties [but] I am sure they are cheaper than building a power station."
from Business Report here
Did you like this article? Share it with your favourite social network.