Exxaro in an Eskom hole over BEE gap
Exxaro may be safe from being dropped as an Eskom coal supplier due to existing contracts, but the future of the relationship is uncertain, especially after the reduction of its BEE shareholding
Exxaro may be safe from being dropped as an Eskom coal supplier due to existing contracts, but the future of the relationship is uncertain, especially after the reduction of its BEE shareholding. Exxaro may be safe from being dropped as an Eskom coal supplier due to existing contracts, but the future of the relationship is uncertain, especially after the reduction of its BEE shareholding. Eskom, which has been vocal about only getting coal from miners with aBEE shareholding, said it would stop sourcing coal from any supplier with less than 50% BEE shares. Exxaro has had a BEE shareholding of 50.2% for the past 10 years, but its agreement with BEE shareholder Main Street 333 expired this week and it is still working on a new deal. Exxaro will buy the shares held by Main Street 333 for R3.5-billion, which it will use to repay debt, including R487-million owed to Exxaro. But the group said this meant that when the new BEE deal came in force in April that it wouldbe left with a BEE shar...
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