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MINING.com reported that South Africa’s Eskom announced plans to purchase expensive, export-quality coal from Glencore plc’s (LSE:GLEN) Optimum Coal.
MINING.com reported that South Africa’s Eskom announced plans to purchase expensive, export-quality coal from Glencore plc’s (LSE:GLEN) Optimum Coal.
As quoted in the market news:
The move comes amid concerns that Eskom, which has been criticized for its policy of ‘load shedding’ (rolling blackouts) during peak power periods in order to provide enough electricity for its user base, will not be able to source enough coal from existing contracts.
The deal to buy 5 million tons of coal a year from Optimum Coal is worth R3.7 billion ($318.5 million). The company, of which Glencore owns a stake, produces about 10 million tonnes a year of coal a year from its underground and open-pit mines, with about half purchased domestically by Eskom, and the other half exported.