PETER BRUCE: South32 coal deal is a confidence trick
Seriti’s plan to buy South32 coal assets is a huge mistake when briquettes can satisfy Eskom’s coal needs
The weekend papers were full of a well-spun story about how smart it was for Seriti to have won the exclusive right to bid for South32’s coal mines in SA. The rest of us should be terrified.
Seriti represents the best about the transformation of mining in SA. Its major shareholders, Thebe and Zungu Investments among them, are the cream of the crop. It is a really big, 90% black-owned, mining giant. CEO Mike Teke is a former president of the Chamber of Mines. In 2018 Seriti bought Anglo American’s thermal coal business. A huge deal for a huge amount of money.