FOOTNOTES
HILARY JOFFE: New BEE owners of New Largo could find themselves at the coalface of a struggling sector
The sale by Anglo American of its New Largo coal project is a symbolic moment for the industry, one that touches on key aspects of SA’s coal mining and Eskom stories and raises questions about the future of both. New Largo, in Mpumalanga, is the coal resource that was supposed to supply Eskom’s new Kusile power station and was part of the reason Kusile was located in that spot. By now, a new mine at New Largo should have been almost ready to supply Kusile. But perhaps it’s fortunate that Kusile is running so far behind, because the project — whose cost is estimated at R20bn — hasn’t even been started yet. Anglo has sold New Largo, which comprises an old closed colliery and the new project, to a black economic empowerment (BEE) group led by Mike Teke’s Seriti Resources for R850m. The deal follows Anglo’s 2017 R2.3bn sale to Seriti of New Vaal, New Denmark and Kriel, which are "tied collieries" that sit beneath the power stations they were built to supply.The deal catapulted Seriti to...
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