Two-year-old black-owned coal producer Seriti Resources is set to become Eskom's second-largest supplier of coal, accounting for more than a third of the coal Eskom's power stations burn each year if its deal to buy South32's coal assets goes ahead as planned.And though the deal could raise concerns about "concentration risk" for Eskom and prompt competition scrutiny, the two companies say it will be good for the power utility, creating a strong and sustainable supplier that will be able to meet the demand more efficiently and affordably.Seriti and South32 announced on Wednesday that Seriti, which was created to buy the Anglo American coal mines that supply three Eskom power stations, will buy South32's 91% of South African Energy Coal (SAEC) for R100m upfront plus a chunk of the cash flow from the SAEC mines that depends on the rand coal price but could go up to R1.5bn a year, out to 2024. The two coal mines to be acquired from South32 supply Eskom's Kendal and Duvha power statio...
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