June 12 (Bloomberg) -- Exxaro Resources Ltd., a South African coal producer, said it had completed 7 billion rand ($700 million) of funding for two wind farms with Tata Power Co. in the continent’s biggest economy.
Exxaro and Tata Power’s Cennergi (Pty) Ltd. clean-power joint venture got finance from Standard Bank Group Ltd., Nedbank Group Ltd.’s Nedbank Capital unit and the International Finance Corp. for the wind projects, Pretoria-based Exxaro said in an e-mailed statement. It will fund the remaining 1.8 billion-rand equity portion with Tata Power, it said.
South Africa, where utility Eskom Holdings SOC Ltd. is struggling to meet rising power demand with coal-fed plants, plans to add 3,725 megawatts from renewable sources by 2016 through a program of five tenders. Cennergi’s two projects, which will produce 229 megawatts, were awarded in the second round, where more than a third went to wind power.
The 95-megawatt Tsitsikamma Community wind farm near Clarkson in the Eastern Cape province “is expected to achieve commercial operation from its 31 turbines in 2016,” Exxaro said. Cennergi owns 75 percent of the project with Watt Energy, with a community development trust holding the rest.
The Amakhala Emoyeni wind-farm project, located near Bedford in the same province, will produce 134 megawatts from 56 turbines.
The company supplies all the power-station coal it mines to Eskom, which relies on coal for 80 percent of generation.
Exxaro declined for a second day, losing as much as 1.2 percent to 144 rand, and traded 0.6 percent down at 144.88 rand by 11:47 a.m. in Johannesburg.
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