Eskom in talks with Optimum’s business rescue practitioners over coal supply

Optimum is now asking the power utility to reduce its monthly coal supply tonnage from 400,000 tons to 200,000 tons for the remainder of its contract.

FILE: Eskom’s Megawatt Park offices in Sunninghill. Picture: EWN

JOHANNESBURG – Eskom has confirmed that it’s in discussion with business rescue practitioners at the Optimum Coal Mine but insists there has been no agreement yet.

There were earlier reports that the utility has agreed to more than double its payment for coal per ton from the mine but Eskom has denied this.

Optimum is now asking the power utility to reduce its monthly coal supply tonnage from 400,000 tons to 200,000 tons for the remainder of its contract, given the precarious financial position it finds itself in.

In terms of the coal supply agreement with Eskom, Optimum coal is obliged to supply 400,000 tons of coal to Eskom’s Hendrina Power Station each month.

But it has asked Eskom whether it can supply only half of its supply as part of a way to rehabilitate itself.

Spokesperson Khulu Phasiwe says that Eskom will consider the request but the price will remain the same.

He says Eskom hasn’t seen the mine’s business rescue plan but wants to see it so that talks can begin.

Source: EWN

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