There is a strong indication that Anglo American will select a group to build a 450MW power plant in South Africa before the end of this year.

The projected power plant will cushion Anglo’s Platinum subsidiary electricity contraint and price pressure.

Seven foreign groups have already bid to build the plant near Witibank in eastern Mpumalanga provience at a cost of $1billion.

If an agreement is reached with the group this year, the plant would begin operation by 2015.

Business day, while quoting the company’s Head of Coal Division in South Africa, Norman Mbazima, said; Anglo Thermal is in discussion with various parties on pricing structures and financing.

The project, which will be funded by the power plant operator with Anglo as its sole customer, will reduce Anglo American Platinum’s dependence on Eskoms.