f2wohf
Honorary Master
- Joined
- Apr 15, 2014
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The BEE middlemen are not really the problem either, the problem is that whatever is the mine's cost of
production, Eskom will pay it + a % of profit (I simplify) and a part of the capital cost + any additional capital cost. So the mines are not really incentivized to be cost efficient for their supplies to Eskom which is carrying a huge chunk of the risk.
You can see it here http://www.pmg.org.za/files/130423securing.ppt
This is a massive waste of money.
production, Eskom will pay it + a % of profit (I simplify) and a part of the capital cost + any additional capital cost. So the mines are not really incentivized to be cost efficient for their supplies to Eskom which is carrying a huge chunk of the risk.
You can see it here http://www.pmg.org.za/files/130423securing.ppt
This is a massive waste of money.