Seriti Resources has mined itself into a corner by sinking more than R400m into a new mining operation that is now sitting with over half-a-million tonnes of coal because Eskom is stalling on signing a long-awaited agreement to supply the adjacent Kusile power station.

Seriti, the black-owned miner that is set to be one of Eskom’s biggest coal providers after buying South32’s SA business, began work on the western limb of its New Largo resource 12 months ago, a project undertaken on the understanding that it would provide Kusile, one of Eskom’s two long-delayed and over-budget coal-powered stations...

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