MASSIVE EXPLOSION AT ESKOM’S NEW POWER UNIT ‘MEDUPI’

By Dr David Davies 

Our most recent research report 'Major Impact of South Africa's Energy Crisis on Future Supply of Platinum Group Metals' by Dr David Davies was released on August 3rd and provided a detailed insight into the potential impact of a diminishing and intermittent electricity supply from South Africa's national power utility (Eskom) on the future of South African Platinum Group Metal (PGM) supply.
 
On Sunday 8th of August, there was a considerable explosion at Eskom's Medupi Power Station (the world's largest and most expensive coal powered generator) which has caused serious damage. It is not expected to be repaired within the next 2 years and cost estimates are running between Rand 2bn and Rand 4bn (US$135 million - US$270 million). This explosion occurred only a week after Eskom announced that the power station had reached commercial operation status!

It is likely therefore that the anticipated energy gap discussed will indeed widen significantly over the next 5 years as a result of:
  • the low energy availability factor (EAF) of existing coal-fired plants.
  • a 3 - 4 year slippage in the newbuild programme
  • capital constraints

Dr David Davis believes this energy gap will most likely cause a direct impact on PGM mining operations within the next 2 - 3 years, with a significant drop in PGM supply caused by higher levels and frequency of load shedding. Please reference his latest report attached.

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 CLICK HERE to download the report in full. 

  

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