Eskom sticks to black-owned supplier policy
Interim group CE Matshela Koko to press Exxaro on how it intends to comply with the 50%-plus policy requirement
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...