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Coal cost, global reserves for power generation
Posted: 22 February 2008

The USA is curently sitting on the world's largest coal reserves estimated at 258 Gigatonnes. Next Russia at 225 Gigatonnes folowed by China at 115 Gigatonnes. Africa as a whole has only 56 Gigatonnes. Cost per tonne of South African power station coal has to be escalated to global prices and this immediately affects power generation costs as well as the reserve finance needed for urgent recapitalisation of new power stations. The South African coal model is not sustainable in global terms with Eskom paying less for coal than the actual cost per tonne mined and the financial loss being cross subsidized by coal exports.
We must also ask the question as to why the USA is not using more coal fired power stations [irrespective of the carbon emission issue] or are they sitting on a strategic energy resource deliberately and waiting for the rest of the world to run short?

US and South Africa double prices
Dateline: 5 January 2009
The economy formerly known as the world's largest, and one of the smaller first world economies, have simultaneously succumbed to price increases to control energy shortages. Despite denials that substantial increases were on the cards, and within hours of each other, the US has doubled gas prices and South Africa doubled electricity prices. The incoming and outgoing US presidents acted ...
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