Seriti set to become key player in coal
By taking over three Eskom- tied coal mines from Anglo American, Seriti Resources has landed itself in a bittersweet deal with Eskom.
By taking over three Eskom- tied coal mines from Anglo American, Seriti Resources has landed itself in a bittersweet deal with Eskom. The electricity utility still needs to give the go-ahead for the deal, but Seriti is set to become the second-largest supplier of coal to the state-owned enterprise. Eskom buys about 120 million tons of coal a year, with Exxaro Resources as its biggest supplier. After a long, ugly dispute with Exxaro last year over Arnot mine and the supply of coal to Arnot power station, Eskom demanded that it should be part of any future decisions on all the cost-plus coal-mine contracts it has with companies, including Anglo American's tied coal assets. When Anglo American this week announced the sale of its three operational coal assets and four closed collieries for R2.3-billion to Seriti Resources, the power utility said it still needed to have a meeting with Anglo American over the terms of sale. Eskom spokesman Khulu Phasiwe said: "We don't want contracts to b...
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