The AIM-quoted and AltX-listed mine to metals groups, Jubilee says that South Africa’s national utility Eskom has reinstated a private power purchase agreement (PPA) entered into with Jubilee’s subsidiary Power Alt Pty Ltd in December 2012. That company will commence with the supply of all surplus power capacity from its power plant with immediate effect.
It expects to deliver approximately 5.0 MW to the South African grid which equates to an expected revenue R3.5 million a month. The term for the reinstated PPA is yet to be finalised due to the urgency for the immediate supply of power. The reinstatement of the contract is driven by the continued pressure on the supply of power to the national grid.
Leon Coetzer says “The reinstatement of the PPA by the national energy provider is welcomed but largely expected due to the continued pressure on the supply of electricity in the South Africa. The company will continue to review the potential of further increasing the power supply capability of our power plant to grow this revenue exposure. We expect the need for private power sales to further grow leading into the winter months in South Africa when historically the power demand in the country further increases.”
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