Eskom raises cost of coal in Seriti deal but gets a pile of benefits
Power utility, which is technically bankrupt, will pay R4bn more for the 30-million tonnes of coal from Seriti over four years
Seriti Resources, the mining group run by Mike Teke, will take over South32’s SA coal assets in June now that Eskom has agreed to pay 33%, or R4bn, extra for coal supplied to its Duvha power station in Mpumalanga.
The sales agreement between the two miners was signed in November 2019 and the renegotiation of the coal supply agreement between South32’s SA Energy Coal (SAEC) and Duvha was the final remaining condition for the deal to close. At the revised price Eskom, which is technically bankrupt, will pay R4bn more for the 30-million tonnes of coal it will receive from Seriti over the coming four years...