Johannesburg - State diamond mining company Alexkor is set to enter the coal mining business and supply Eskom with 10 million tonnes a year, Business Day reported on Monday.
The newspaper said Alexkor was planning on partnering with emerging black coal miners to reach the target.
The move was, however, seen as a duplication of mandate. The company would now be competing with state-owned coal mining company African Exploration, Mining, and Finance Corporation (AEMFC), which was mining the Vlakfontein mine in Witbank.
While Alexkor reported to the public enterprises department, the AEMFC was switching from the energy department to the mineral resources department.
"It looks as if several different departments are going into business on their own. I think this is a confusion and I cannot see it ending well," Democratic Alliance mining spokesperson James Lorimer reportedly told Business Day.
Webber Wentzel partner Peter Leon was quoted as saying the move did not make economic sense and did not seem to be an efficient allocation of economic resources.
African Exploration general manager for strategy and planning Sicelo Sikakane reportedly said Alexkor’s plans had not been discussed with them.