Eskom not paying double for less coal from Optimum mine

ESKOM, the South African electricity utility, denied it was buying coal at a premium from Optimum Coal Mine in order to bail out the former Gupta-owned colliery, but it was in talks with the mine’s business rescue practitioners about securing a new rate.

“Eskom has had discussions with the business rescue practitioners with a view to ensuring that they continue to perform, in terms of the coal supply agreement, and coal supply to the power station is resuscitated without further delays,” Eskom said in a statement. This followed report by City Press which said the proposed business rescue plan for Optimum would see Eskom pay twice as much for half the coal it can get from the mine.

“We wish to state categorically that to date Eskom has not agreed to any price adjustment with the business rescue practitioners and the allegations made in the City Press article yesterday are factually incorrect and without basis,” Eskom said. According to the coal supply agreement, Optimum coal mine has to supply 400,000 tonnes of coal to Hendrina power station per month, at a price of R201.6 per tonne.