[miningmx.com] – “There is no crisis with the supply of coal to Eskom. To say we’re going to have a crisis with coal supplies is a bit rich. I know there are a number of companies who are eager to negotiate contracts with Eskom.’
This was the view of acting Eskom boss Brian Molefe today when he was asked about Eskom’s willingness to diverge from its requirement that its coal suppliers should have 50% plus one share black ownership.
Lynne Brown, Minister of Public Enterprises, and delegates from the six state-owned companies, including Eskom and Transnet, held a media briefing ahead of the department of public enterprises’ budget vote this afternoon.
Asked if Eskom’s procurement policy on coal could lead to a coal cliff – a future void in the supplies of coal to keep power stations going – Molefe said “it’s not as if South Africa is going to run out of coal’.
According to media reports Eskom wants the majority of coal to be supplied by black-owned companies with the result that big companies, such as Anglo American and BHP Billiton, are now considering exiting the domestic coal market scene.
“Over the next two to three years a number of the long term coal contracts are coming to an end and they will either be renegotiated or there will be new contracts put in place,’ Molefe said.
“I don’t think we should pre-empt that process. We’ll consider our options and negotiate contracts that will be best for Eskom. Black economic empowerment is a policy of government, we’ll insist on it and we’ll negotiate contracts that are in the best interest of Eskom going forward.’
In addition to the coal issue, Brown and her delegation was asked about the possible privatisation of segments of Eskom. Earlier this week Business Day reported that Treasury was considering the partial privatisation of the state-owned company.
Brown was adamant that the provision of basic services should never be privatised. “Basic services must be provided by the state. Our private companies and the private sector interact with it, but I believe the state should remain in charge where basic services is concerned.’
She added that the independent system and market operator (Ismo) bill, in terms of which the distribution and generation of electricity were to be separated between the private and public sector, was off the table.
“Until we know what the end state of energy in South Africa is we can’t decide which parts [of electricity generation] should go where. We can only make such a decision once we know what we’re working towards.’
