(Bloomberg) --

South Africa’s state-owned power utility Eskom Holdings SOC Ltd. and two of its biggest coal suppliers have agreed to outline plans for renewable energy projects at mines that produce the fuel.

Exxaro Resources Ltd. and Seriti Resources “aim to achieve both carbon reduction and cost savings” with the support of Eskom, said the companies, which together supply about 80% of the coal used be the utility. The first phase of the project will involve building solar facilities.

Eskom is South Africa’s biggest producer of greenhouse gases. The loss-making utility is struggling to transform the business while moving from its dependence on coal to low-carbon energy sources such as renewables.

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