Coal deal big step to real change

A onsortium led by prominent entrepreneurs Sandile Zungu, Dr Anna Mokgokong and Mike Teke has just given real meaning to the new “radical economic transformation” buzzword.

A deal has already been concluded to buy Anglo American’s Eskom-dedicated thermal coal mines, New Vaal, New Denmark and Kriel collieries for R2.3bn. This purchase announced on Monday by Seriti Resources Holdings, a company led by Mike Teke, will create the second biggest provider of coal to Eskom, a significant step towards the transformation of our skewed economy.

Seriti, which means dignity, is most fitting for a business that, with the mere stroke of a pen, has given the underprivileged majority hope that real change is possible.

Political equality is meaningless without economic participation and power, and this has been the clarion call by politicians for the past 22 years of our democracy.

The country needs black role players in the key sectors of the economy for there to be real change. It is very encouraging therefore to hear that Young Women in Business Network (YWBN) is in the process of starting South Africa’s first blackowned bank, with 60% black women ownership.

With over 420 shareholders they have collectively invested over R4.2-million towards the formation of the YWBN Co-operative which qualifies to be a co-operative bank.

The group led by founder Nthabeleng Likotsi is aiming to become a fully fledged bank soon, which will make them the first black bank in the country.

The Seriti transaction is set to close by the end of this year and requires the approval of Eskom for the transfer of the coal sales agreements from Anglo.

Once wrapped up, Seriti will supply 25 million tonnes of the 120 million tonnes of coal Eskom consumes annually.

The consortium, according to Teke, is looking at even bigger and better things in the future, including buying Anglo’s export mines, should the opportunity arise.

As part of ploughing back, Mokgokong said the company's 2400 employees will receive 5% of the company shares and another 5% will be held by communities where the mines operate.

This may not make instant change in the lives of communities in mining towns, but it will definitely make some difference.

Unlike previous BEE deals where businesses under stress were sold to blacks, the three mines bought by Seriti produced 36-million tonnes of coal last year.

Real tranformation has been long overdue.