Insight

South Africa: Eskom will pay a higher price for future thermal coal supplies

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Eskom's coal prices have increased five-fold over the past 15 years, due to higher cash costs and more recently new expensive supply contracts.  The coal supply deficit from traditional cost-plus and key fixed-price mines has increased to one third of Eskom's total annual consumption, reaching 39 million tonnes in 2015. This upward trend in coal prices is set to deteriorate for Eskom as some key supply contracts near an end.

Table of contents

  • Executive summary
  • Introduction
  • Sharp rise in coal costs
  • Future prospects even more bleak
  • Conclusion

Tables and charts

This report includes 5 images and tables including:

  • Location map: Eskom's coal-fired power stations and key supplying mines
  • Eskom's cost-plus and key fixed-price mines average total cash cost 2000-2015, R/t
  • Eskom's coal cost, price and total burn
  • Eskom annual cost and price escalators, % change year-on-year in Rand terms
  • Eskom incentive price scenarios

What's included

This report contains:

  • Document

    South Africa: Eskom will pay a higher price for future thermal coal supplies

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