MIKE TEKE: South 32/Seriti deal is about taking a loss-making colliery to break-even
The allegation that this is a rerun of the state capture saga of past years is defamatory
A number of misleading reports and ill-informed commentaries have surfaced in various media in recent weeks, including in this newspaper, raising doubts about the integrity of the commercial relationships between Eskom and the current and possible future owner — South32 and Seriti respectively — of the colliery that has supplied Eskom’s Duvha power station over a number of decades.
The Duvha contract has been in place since 1994 and is a long-term coal supply agreement between Eskom and SA Energy Coal (SAEC) that sees 10-million tonnes of coal a year delivered directly to the power station, most of it via low-cost conveyor. The contract has been significantly loss-making for some time and, despite numerous cost reduction initiatives implemented by South32, the contract remains economically unsustainable...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.