Eskom's gas power project faces setback as court annuls permit

Image credit: Reuters

"The effect of this order is that the authorisation is a nullity," the judgment by the SCA said.

"This will necessitate a fresh application by Eskom for authorisation once the required public participation has taken place."

The judgment echoes previous rulings against energy companies which failed to properly consult affected communities when seeking permits to explore for oil and gas off South Africa's coast.

Richards Bay, where the Eskom gas plant is to be built, is also where South Africa's first liquefied natural gas import terminal will be located.

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Environmental groups, which had challenged the authorisation granted to Eskom by the Department of Forestry, Fisheries and the Environment, welcomed the appeal court's judgment.

"Eskom, for too long as a state (company) has gotten away with injustices and people that have lived alongside its facilities will suffer from the ... high levels of pollution," Desmond D'Sa of the South Durban Community Environmental Alliance, one of the applicants in the court case, said in a statement.

Spokespeople for Eskom and the environment department declined to comment when contacted by Reuters immediately.