New Eskom deal doesn’t make sense, say analysts

STATE diamond mining company Alexkor is set to enter the coal mining business and supply Eskom with 10 million tons a year, Business Day reported yesterday.

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, the 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,” DA mining spokesman James Lorimer said.

Webber Wentzel partner Peter Leon said the move did not make economic sense. – Sapa