South Africa doesn’t have enough coal for power plants beyond 2016

South Africa doesn’t have enough coal for power plants beyond 2016

South African power plants face 17 million tonne coal shortfall.

South Africa’s state power utility Eskom doesn’t not have enough coal in stock to meet its generation needs beyond 2016, Public Enterprises Minister Lynne Brown said Wednesday.

According to Reuters, the 17 million tonne coal shortfall will become obvious this year at Matla, Tutuka and Hendrina power stations, while Kriel and Arnot Power Stations will began suffering in 2016.

South Africa’s depends on coal to generate 85% of its electricity. But Eskom, which supplies 95% of the country’s power needs, is struggling to meet demand after delays in building new power stations and as aging plants experience failures.

Coal miners operating in the country are not making it easier either. Recently Glencore (LON:AAL) and Anglo American (LON:AAL) announced they’d be scaling back output or selling stakes in mines as the price of the fossil fuel has dropped 22% in the past year.