The fight between Eskom and its coal supplier

[Kevin Lancaster]

The fight between Eskom and its coal supplier

The standoff between power supplier Eskom and commodity trading and mining group Glencore has long been coming.

 

[OMB]

:erm:

In terms of the contract, the Optimum mine supplies Eskom’s Hendrina power station with 5.5 tonnes of coal a year.

I can't see a power station running more than about 5 minutes on that much coal

 

[R13...]

:erm:



I can't see a power station running more than about 5 minutes on that much coal

Yeah there's an m missing there, but the average journo wouldn't know the difference or bother checking.

 

[Tokolotshe]

we would truck in coal from other suppliers

From who? Right there is the loophole the 'partners' waiting in the wings have been waiting for.

http://www.moneyweb.co.za/news/companies-and-deals/glencore-starts-business-rescue-at-sa-coal-unit/

The price Optimum receives from Eskom is “less than half the cost” of production, he said.

I'd be very amused to see at what cost it would be trucked in. Bear in mind coal was transported via conveyor. It does not get better than than. But I guess that was the hidden program all along. Some interested sharp journalist might wish to re-look this in a year.

Eishkom, take a proud bow. You have won the fight, yet lost the war for all of us. More jobs destroyed.