[miningmx.com] – ESKOM is to buy export quality coal from Glencore’s Optimum coal mine in Mpumalanga province which it will then blend down at signficant cost – an arrrangement dubbed as “crazy” by an unnamed industry expert.
“I think it is the most crazy thing … in the past century,’ said an industry expert who could not be named due to sensitive contracts with the parties, said Business Times, a weekly newspaper. “That coal … could be used if blended down,’ he said.
However, the cost of blending the coal – some five million tonnes from parts of Optimum that Glencore said was too expensive to operate for exports, is expensive at a time when Eskom has troubled financing itself.
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