Date: Oct 15, 2018
Exxaro Resources said on Friday it was looking to supply coal to state-owned power utility Eskom, which has been hit by supply shortages, posing a threat to the power supply in Africa’s most industrialised economy.
Eskom, which has fewer than 20 days of coal supply at 10 of its power stations, supplies more than 90 percent of the nation’s power and is one of its most indebted state firms.
“We have made offers to Eskom, they have from what I hear, approved those offers,” Exxaro’s chief executive officer Mxolisi Mgojo told Reuters in an interview.
“The final decision is sitting with the (state) Treasury to enable them to execute those contracts.”
Eskom said last month it was trying to secure new contracts with companies to ensure it had enough coal, after a major supplier cut supplies and sought insolvency protection.
Exxaro, which already supplies Eskom’s Matimba, Matla and Medupi power stations, aims to enter into short-term contracts with Eskom, said Mgojo.
“We don’t want to get involved in long-term 10-, 20-, 30-year type arrangements,” said Mgojo.
