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Pending Eskom coal deal puts SA taxpayer’s neck on the block again

Business News 9 months ago

A merger between two of Eskom’s biggest coal suppliers brings with it major risks, both to Eskom and the rest of the country.


07 Oct 2019
PREMIUM!
Pending Eskom coal deal puts SA taxpayer’s neck on the block again

Picture: AFP

The pending merger between two of Eskom’s biggest coal suppliers – Australian mining house South 32’s South African Energy Coal (Saec) and Seriti Resources – has not only raised questions about competitive procurement but could pose major risks for Eskom and South Africa. Energy expert Chris Yelland said for Seriti there was the risk of becoming over-geared and over-extended with a need to develop new coal mines and recapitalise old ones in an environment where banks and financial institutions are pulling back from funding coal. “It is clear that the envisaged Seriti-South 32 deal presents a number of risks to...

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