Share

Eskom says Anglo coal is a rip-off

Johannesburg – Anglo American’s New Denmark Colliery is one of Eskom’s most expensive coal suppliers, according to a statement released by the power utility.

Eskom stated that the Tutuka Power Station’s coal supply from the New Denmark Colliery for the period between April 2016 and May 2016 came to R1 600 per tonne. This includes the total costs of operating a mine as well as the amortisation costs of historical capital expenditure, it stated.

Yesterday, following the announcement of Eskom’s Integrated Results for 2016, Anglo American released its own statement to clarify that the cost of coal supplied to the Tutuka Power Station was R668 per tonne for that period. This was in accordance with the contract, mine progress and agreed budget between Eskom and Anglo American.

Anglo American spokesperson Moeketsi Mofokeng told Fin24 that it stood by its statement. “Given the historical circumstances surrounding New Denmark Collier, which Eskom is fully aware of, we feel that the statement issued is still adequate,” he said.  

Eskom also stated that even if the price quoted by Anglo American is correct, it is still more than 70% above Eskom’s average price of coal. About 18% of Eskom’s energy costs are from independent power producers and IPPs only account for 4% of production, according to its integrated annual results.

Eskom’s investment in New Denmark Colliery was initially done on a cost-plus basis with an intention to provide security of supply, and pricing. Eskom called for Anglo American to change the performance of the mine to be in line with these intended expectations.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders