Exxaro defends Eskom

[dlk001]

So how could Eskom have a low stockpile if there is a oversupply of coal and a 4 year price low?

But is there an over supply of coal to the Eskom Power Stations or an over supply of export coal in the export market? What is their current stockpile buffer?

 

[Greylor]

The fact that Eskom buys 90% of the coal that they produce has absolutely no impact on what he is going to say about them.

 

[dlk001]

EXXARO Resources booked a R1.6bn payment from Eskom for a shortfall in coal that should have been delivered to the heavily delayed Medupi power station - a penalty that gave a much-needed lift to the group's coal division which otherwise performed poorly in the 2013 financial year.

Exxaro's coal business reported a 32% increase in net operating profit of R2.78bn. Of this profit, nearly 60% was related to the Eskom penalty which represented a quantum increase over the R352m that was paid by Eskom to Exxaro in the mining group’s 2012 financial year.

The penalty was in lieu of cash flow from coal that should have been delivered to Eskom's 4,750MW Medupi power station from Exxaro's R10.3bn Grootegeluk Medupi Expansion Project (GMEP). Eskom and Exxaro revised the Medupi coal supply contract last year amid power station delays.

In the current 2014 financial year, another R1.6bn would be paid by Eskom to Exxaro, said Exxaro CFO, Wim de Klerk, who added that continued coal delivery shortfalls would call for further negotiations with Eskom.

http://www.miningmx.com/page/news/m...lects-R16bn-from-Eskom-lifts-div#.UxmQqfmSxu4

 

[grok]

On SABC 3's news this evening it was mentioned that previously coal would be moved to the power plants by way of covered conveyor belts; a solution which apparently wasn't as prone to the problems being experienced currently.
Apparently somebody made a choice to switch to using smaller colleries from which coal is now transported only by road in open trucks, and therein apparently lies most of the problem.
Caught this just after it started so unfortunately I didn't catch the name of the guy they were interviewing.

This strange change sounds a lot like some type of ANC enrichment / corruption deal.

Exactly, plus they're being forced to use BEE transport contractors who also aren't as prepared or had this experience for many years. It's not a wet coal problem, its logistics.

 

[Sonic2k]

This load shedding crisis was not caused by the wet coal. It was caused because Eskom lost 4 generating units the night before of more than 2500MW total and therefore depleted all their pumped storage water reserves to meet demand. The wet coal is just an additional excuse that resulted in the working generators producing less than their peak power.

It's like saying that you were late for work because you put 93 petrol in your car instead of 95, when in actual fact your engine broke.

Indeed... the "wet coal" thing is a hoax... Wish more on this forum would realize its absolute BS.

 

[Greylor]

Exactly, plus they're being forced to use BEE transport contractors who also aren't as prepared or had this experience for many years. It's not a wet coal problem, its logistics.

How else is the decision makers brother going to make his millions?

You bladdy agent!