ESKOM has issued a request for proposals by September 8 to supply coal to its Hendrina power station, for which the Gupta-owned company Tegeta Exploration and Resources is perfectly positioned.Tegeta’s Optimum, which is is a tied mine, supplies the most suitable coal for Hendrina at the lowest transport cost.The supply request for Hendrina is asking for 6-million tonnes a year for an initial 10 years. The contract with Optimum’s previous owners Glencore was for 5.5-million tonnes a year and expires in 2018.Eskom said "Suppliers that can supply coal beyond the initial period of 10 years are also welcome to tender specifying their duration." This appears to contradict Eskom CEO Brian Molefe’s policy of moving away from long-term to short-and medium-term supply contracts.Asked about the higher tonnages required for Hendrina, Eskom spokesman Khulu Phasiwe said it could burn more than 5.5-million tonnes a year.Hendrina is one of the cheapest power stations in Eskom’s fleet, so it had to ...
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