Eskom does not intend compromising on the quality or costs of its coal supply while pursuing its target of buying only from companies that are majority black-owned, says interim group CE Matshela Koko. Exxaro, Eskom’s biggest coal supplier, was more than 50% owned by a black consortium until the end of last month, when the consortium’s 10-year lock-up period ended. It is now negotiating to replace that structure with one that would reduce its black ownership to about 30%. Last year Eskom implemented a policy of signing new coal contracts only with companies that are more than 50% black-owned, although the mining charter requires only 26%. Exxaro supplies more than a third of Eskom’s annual requirement of about 110-million tonnes of coal. The rest is bought on long-term contracts with multinationals such as Anglo American, South32 and Glencore. Koko said on Monday Eskom would soon ask Exxaro for a meeting to discuss how it intended to comply with the 50%-plus policy requirement. Exxa...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now