https://www.miningweekly.com

Treasury blocks Eskom request for Tegeta coal-supply extension

1st September 2016

By: Bloomberg

  

Font size: - +

JOHANNESBURG – South Africa’s National Treasury denied Eskom’s request to extend a short-term coal-supply contract for the Arnot power plant with Gupta family-controlled Tegeta Exploration and Resources, the electricity producer said.

Four companies including Tegeta are providing the plant with coal until long-term suppliers are named at the end of September, Khulu Phasiwe, an Eskom spokesperson, said by phone. The utility has asked them if they could supply more of the fuel to cushion the transition. “Treasury has rejected Tegeta’s extension,” he said. Another producer has offered to supply more, he said, declining to identify the operator.

Tegeta is part-owned by the Guptas, who are friends with South African President Jacob Zuma. Senior officials from the governing African National Congress alleged that the family offered them cabinet posts, fueling speculation about how much influence the family had over the leader. The National Treasury is reviewing Eskom’s coal contracts and said Monday that the utility is resisting its investigation. The producer’s CEO Brian Molefe, told lawmakers on Wednesday that it intends to comply with the department.

None of the producers being considered to supply Arnot over the long term, which don’t include Tegeta, can individually provide the five-million tons of coal a year it requires on their own, but collectively they can, Phasiwe said. The utility has identified a shortfall between the short-term and long-term contracts and is attempting to address that, he said.

OPTIMUM MINE
Tegeta has supplied Arnot from the Optimum mine, which was placed under a form of bankruptcy known as business rescue while owned by Glencore in August last year. The supervisors of that process said on Wednesday that the company is “no longer financially distressed” and can be returned to the control of its managers and directors.

Umsimbithi Mining, Hlagisa Mining and Exxaro Resources are the other three producers currently supplying Arnot.

Edited by Bloomberg

Comments

Showroom

John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.

VISIT SHOWROOM 
AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer
Gold, hydrogen, mining boost make headlines
Gold, hydrogen, mining boost make headlines
15th March 2024
Magazine round up | 15 March 2024
Magazine round up | 15 March 2024
15th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.113 0.147s - 106pq - 2rq
Subscribe Now