GUPTA-OWNED MINES
Alternative coal producers set to benefit from Eskom shortage of coal
Failure of Gupta-owned mines to deliver coal at heart of supply shortfall
As Eskom grappled with a shortage of coal, alternative producers would benefit and come to the rescue of the power utility, as it sought to plug a gap in supplies at several of its stations. National Treasury has given Eskom the go-ahead to source coal out of contract, following the failure of Gupta-owned mines to deliver the commodity. Eskom spokesman Khulu Phasiwe said on Tuesday the power utility had imposed a R105m penalty in January and Eskom had refused to pay Optimum a R53m invoice. That is when Optimum went into business rescue. Phasiwe said the coal supply issue would be resolved before winter sets in as Eskom was awaiting approval from the National Treasury to source coal from elsewhere. Roger Lilley, an analyst at EE Publishers, said coal companies would probably use the shortage of supply to their own advantage by increasing coal prices, knowing Eskom was desperate. Alternative suppliers Eskom approached the Treasury in April for permission to seek alternative suppliers ...
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