South African Nuclear Generation Will Be State-run - Minister (01 August 2011)

01 August 2011

JOHANNESBURG--South Africa will diversify its energy base to include nuclear energy and generation will be run by the state, said the minister of public enterprises Monday.

"We are going firmly into nuclear generation," Malusi Gigaba said. "Nuclear generation will be conducted by the state. It is an important asset that should remain in the hands of the state."

Gigaba said the country is trying to diversify its primarily coal-fired electricity production by adding more renewables and nuclear production. He said the country is taking note of the lessons learned in Japan after the Fukushima nuclear accident, and said that could delay the move to nuclear energy, but that it will still happen.

State-owned Eskom Holdings Ltd., which produces 95% of South Africa's energy, is in the process of building two new coal power stations.

Gigaba said South Africa will still need more power generation after the Eskom build is completed.

-By Devon Maylie, Dow Jones Newswires; +27 11 783 7848; devon.maylie@ dowjones.com