Anglo CEO: Eskom our biggest threat
The utility is now projecting a R20bn loss for the year to March, almost double its previous forecast
Eskom is the biggest risk to Anglo American’s South African business in the short term, says CEO Mark Cutifani. Anglo remains one of SA’s leading mining companies with domestic assets in platinum group metals, diamonds, coal, iron ore and manganese despite selling all its coal mines that supply Eskom. Eskom has asked the National Energy Regulator of SA for permission for tariff hikes of 17.1%, 15.4% and 15.5% over the next three years, which is more than the 15% a year it originally requested. In a sign of how the power supplier’s financial crisis has spiralled out of control, CFO Calib Cassim said on Monday that the company was projecting a R20bn loss for the year to March, almost double the R11bn it was forecasting about three months ago. Potential price hikes and the unreliability of electricity provision from Eskom, which supplies virtually all of SA’s energy needs, has been identified by credit agencies and industry leaders as the biggest risk to the economy. Most of the utilit...
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