A South African coal producer is partnering with GDF Suez (Euronext: GSZ) to develop a 600 MW coal-fired power plant.

Exxaro Resources Ltd. (EXX), a South African coal producer, is teaming up with the French company to develop the pant to be powered by fuel from the Waterberg region of South Africa’s Limpopo province.

Coal
The capacity of the power station, to be located next to Exxaro’s Grootegeluk coal mine, may double depending on the availability of water and grid constraints, Pretoria-based Exxaro said in a statement. Fuel for the plant will be supplied from its Thabametsi mine, a planned opencast operation.

By building its own generator, Exxaro can ensure it has electricity to operate even as state utility Eskom Holdings SOC Ltd. struggles to meet demand in Africa’s biggest economy.

Exxaro currently supplies all the power-station coal it mines to Eskom, which relies on the fuel for 85 percent of generation.

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