Wednesday, August 26, 2015

Optimum to compensate Eskom

Rentse Khiba
26 August 2015 
Eskom said today it wants compensation from Glencore's mining subsidiary Optimum if it is unable to supply coal to its Hendrina power plant.

Optimum, which produces 10 million tonnes of coal a year, is under financial strain because it says it was selling coal to Eskom for less than the cost of production.

The business rescue practitioner said last week it has offered to temporarily supply coal to Eskom at the cost of production, higher than what Eskom currently pays, while a new deal is negotiated.

Eskom’s spokesperson Khulu Phasiwe said, “We have noted this report whichare claiming that we are pursuing some compensation and things like that. The only compensation we are looking at R2 billion which we have already communicated and this one relates to the poor quality of coal that we got.”

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