[miningmx.com] – GLENCORE’S Optimum Coal Mine had reached an interim agreement with Eskom to continue supplying the utility’s Hendrina power station whilst the mine was in business rescue, said BDLive.
Citing a statement issued by business rescue practitioners Piers Marsden and Peter van den Steen, BDLive said Optimum would supply Hendrina at a base price of R150 per tonne while negotiations around the agreement continued.
The company has said previously that it cost about R400 per tonne to produce the coal for the power station. Glencore has provided financial support to enable the mine to continue supplying the power station.
Brian Molefe, acting CEO of Eskom, told Bloomberg News that: “They (Optimum) thought that by saying they will stop supplying, we will jump up and down, sign and increase from R150 per tonne to R530 per tonne”.
“Last night we had meetings and I called them in and I said, “Guys, you see your threat didn’t work’.”
Click here to read the full article
