Media Briefing 2 Damage to Majuba power station coal storage silo 7 November 2014
Introduction Progress: Majuba power station recovery The system outlook and plan Conclusion 2
Introduction Progress: Majuba power station recovery The system outlook and plan Conclusion 3
Overview • Eskom has not load shed since Sunday, 2 November 2014 at 22:00 • The system is still tight but remains stable, with Majuba power station currently generating 1 600 MW • Four of the six units at Majuba are in operation and will be available for full load during peak periods • Eskom employees have worked tirelessly for the sake of the country • The following has been prioritised: • the safety of our personnel and securing the area surrounding the silo, as well as the remaining outside coal handling plant • assessing the damage caused, identification of risks and rolling out the recovery programme • providing internal and external investigators the opportunity to review the incident in detail • The investigation could take between 3 – 6 months to finalise 4
Introduction Progress: Majuba power station recovery The system outlook and plan Conclusion 5
The damage to a pivotal part of Majuba power 1 station’s outside plant occurred on 1 November • Majuba power station has a coal handling and feed design that is unique within the Eskom fleet • Coal is sent from the stockyards by conveyor to a central silo (silo 20) that is pivotal to coal supply of all 6 generating units • By design the silo has a 50 year life of plant • The silo has been externally inspected every 2 years and the most recent inspection in September 2013 showed no signs of deterioration or structural damages • Unit 4 was scheduled for a 90 day general overhaul outage (“GO”) commencing on 1 November • No inclement weather was experienced and no geo- activity was reported on the day 6
Our emergency and major incident procedures 2 have proven to be effective • At approximately 12:30 on Saturday, 1 November, operators on duty reported a vertical crack on silo 20 to the Engineering Manager and Power Station Manager • The immediate response was to ensure the safety of our people; the site and access/ egress points to the silo and conveyor systems were cleared • Roll-calls were undertaken to account for all employees and contractors on site – all people were accounted for • Full escalation to the group executive had taken place by 13:30 with the full collapse occurring at 13:12 • A team of experts were deployed to the site on Saturday afternoon to rescue capacity and put in place further preventive measures to safeguard the continued operation of the plant 7
We have initiated an investigation to 3 determine the root cause of the collapse • We have setup a dedicated site recovery team led by Dan Marokane, Group Executive Group Capital • A full investigation into the root cause of the collapse is under way • The mechanical nature of conveyor and chain driven systems naturally result in vibrations • Historical monitoring data, including vibrations monitoring, have been analysed and there were no indications that the silo was about to fail • Our investigations will be based on plant data from the time of the incident and will call on expertise from across Eskom (as well as international independent experts) • Full details of the investigation will be disclosed to the shareholders and regular updates on progress will also be made available 8
Recovery Project : high Level scope of work Majuba Recovery Project Immediate Interim Permanent Two key aspects: Solution required to Solution that offers long 1. Recovery of Power maintain power plant sustainability could be 1 “like -for- like” or an Plant Output output whilst permanent 2. Safety of Site solution is designed, optimised design 2 (demolishment of the procured and constructed Construction of full unsafe and collapsed Construction of works to feed coal structures) temporary conveyor from coal stock yard system to feed coal from to power station units coal stock yard to power station units Immediate Actions undertaken: Project Manager is appointed Project set-up in progress including project controls with resources Group Technology and Group Commercial support mobilized All other required support for the project to be mobilized as scope of work unfolds 9
Our plans to restore capacity in the short- 4 and medium-term are yielding results • In the immediate term, mobile feeders are installed to feed units 1, 2, 5, and 6 • By-pass systems that allow unit 2 to feed 60% of unit 3 coal bins are been utilised • Capacity has already been restored at 4 of the 6 units (Unit 4 remains offload as it is on planned maintenance for 90 days) – The plant is already operating with at least 70% of expected capacity • Coal supply from the stockyard to the generating units is secured by means of a short-term truck-based solution – This solution will not increase coal truck volumes on the outside roads, but will increase traffic in the outside plant areas and at the station entrance – A system to ensure safe trucking of coal within the outside plant areas has already been established • This short-term solution is envisaged to be in place for 6 months • As the site is cleared additional solutions will be put in place to further rescue additional capacity and ensure safe working conditions • The full recovery of the coal feed systems will be completed within 24-months 10
Our teams are committed to recovering normal 5 operations and are focused on a critical set of actions Critical actions to take Timing • Complete scope of work for making the • 10 November 2014 construction site safe • Install second Buffalo feeder on silo 30 • 17 November 2014 • Demolishing of damaged structures • 21 November 2014 • Detailed recovery plan, including design, the • 28 November 2014 build and financial implications • Clearance and removal of rubble from site • 12 December 2014 • Redesign of coal conveyer system and silo • 31 December 2014 structure 11
Overview of Majuba power station
Sequence of incident Intact silo 20 Major vertical and coal feed system and lateral cracks Collapse of silo 20 Damaged conveyor and coal feed system
Situation before failure of silo Online Maintenance Conveyor belts Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Silo 1 Silo 2 Silo 3 Coal stock- Delivery of coal yard by truck and train
Current situation Online (partly with reduced capacity) Offline Conveyor belts Truck delivery Mobile feeders Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Coal stock Delivery of coal by yard truck and train 15
Current operations – replenishment of coal stocks Standard procedure - deliveries to stock yards Coal delivered to silos 10 and 30 Coal transshipped from yards to outside plant areas 16
Current operations – coal feed to generating units Delivery trucks Mobile feeders Front-end loaders 17
Current operations – safety focus Barricading 1-metre from buildings and for pedestrians walkways; pedestrian crossings also installed Temporary road Silos 10 and 30 for passenger vehicles to limit coal truck and passenger vehicles crossing paths Coal stocks Contained traffic flow pattern within the plant to service replenishment from stocks to silos 18
Introduction Progress: Majuba power station recovery The system outlook and plan Conclusion 19
Assumptions for the week ahead • Weather • Scattered showers are forecasted for tomorrow evening 08 Nov 2014 • Sunny weather is forecasted over the weekend, with some scattered clouds • System Outlook • Improved system condition is expected over the weekend with a reduction in demand • This will assist with restoring emergency resources for next week • As Majuba stabilises the system looks stable for the next few days, with all peaking plant required for evening peaks and system contingencies. • While the system remains vulnerable and tight, the probability of load shedding is low over the weekend and in the coming week. Any changes will be communicated via the media NB: Only shortfall on demand is shown. Reserves are required to meet peak-in-peak. 20
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