Anglo could stop supplying Eskom with coal

[Crableg]

Johannesburg - Anglo American wants to withdraw its supply of coal to Eskom because of government requirements that blacks must own at least 55% of a supplier, Netwerk24 reported on Monday.

It relates to the stubborn refusal by government that New Largo, which is supposed to be the anchor supplier of coal to the Kusile power station, enters into a long term agreement with the owner, Anglo Inyosi Coal, before 60% of the mine belongs to black owners.

This could have enormous consequences for the supply of coal to Eskom, because large investments would have to be done in new coal mines over the next five years in order to meet Eskom's future coal needs.

In December 2014, after years of uncertainty, Eskom agreed with Anglo Inyosi Coal on a framework to prevent delays in building the mine from causing the power station to take even longer to go into operation.

The framework simply means that Kusile will obtain coal from New Largo. A final supply agreement will only be signed when Anglo Inyosi Coal is in control of black shareholders.

Shortly afterwards it was revealed that the first unit of Kusile could only supply power in 2017.

Mark Cutifani, CEO of Anglo, was diplolmatic when he announced on Friday that Anglo is withdrawing its supply of coal to Eskom.

It is good business, he said, but does not make a big contribution to their headline earnings. Anglo owns 63% of Anglo Inyosi and black shareholders own 27%.

"We are going to reduce our shareholding in the mines to less than 50%, including in New Largo," said Cutifani.

Anglo will, however, not supply any financing or other support to increase the BEE shareholding.

"It will have to happen purely on a commercial basis."

Source: http://www.fin24.com/Companies/Minin...upply-20150216

I think that is great, Sort of a middle finger to Government trying to force stupid rules onto the companies the country depends on.

Anglo pretty much just says "okay bye" when they get told they're not BBEE enough.

[BeoTeK]

Another thing to be concerned about in terms of Eskimo and their load shedding, soon be increased.

[Nimatek]

Just saw this article as well, this is going to be interesting !

I'm kinda glad that a large corporate finally decided to tell the govt. thanks but no thanks. You want it that badly, go do it yourself.
BBEEE has been shaped into such a farce that it boggles the mind. There is nothing good coming out of it , a few fat cats getting fatter and everyone else getting stuck with problems. Good for Anglo!

[mk786]

Johannesburg - Anglo American wants to withdraw its supply of coal to Eskom because of government requirements that blacks must own at least 55% of a supplier, Netwerk24 reported on Monday.

Always comes down to colour.
They should call it "blacfrica"

[Edelweiss]

Funny, things just keep getting worse.

Was just reading this article.

http://mg.co.za/article/2015-02-12-e...nesty-irks-anc

[matt]

Funny, things just keep getting worse.

Was just reading this article.

http://mg.co.za/article/2015-02-12-e...nesty-irks-anc

Typical ANC, cover things up and deny problems rather than fixing them.

No worry at all that the country is in serious trouble, they just worry about their "political message"

[AlienTaker]

In all honesty this is turning into apartheid all over again just reversed wonder what they going to do once Big overseas companies start pulling out of the country and we start losing capital specially now that our smartest president ever has decided that no foreigner is allowed to own land in our county anymore, And with his aggressive land reform i can see us turning into Zim before 2017. Watch the Zim Dollar be worth more than our 1c one of these days.

[The Joker]

In all honesty this is turning into apartheid all over again just reversed wonder what they going to do once Big overseas companies start pulling out of the country and we start losing capital specially now that our smartest president ever has decided that no foreigner is allowed to own land in our county anymore, And with his aggressive land reform i can see us turning into Zim before 2017. Watch the Zim Dollar be worth more than our 1c one of these days.

To late for that, its already happening. A seriously wealthy client of mine is selling and leaving SA, he told me about a year ago about the whole new foreigner land policy and I didn't actually believe him (What country would do something like that) and boom he was right. He also told me none of his clients,friends or family want anything to do with SA anymore.

We are talking one of the wealthiest foreigners in SA and he is done with SA.

Great Job.

[Nimatek]

To late for that, its already happening. A seriously wealthy client of mine is selling and leaving SA, he told me about a year ago about the whole new foreigner land policy and I didn't actually believe him (What country would do something like that) and boom he was right. He also told me none of his clients,friends or family want anything to do with SA anymore.

We are talking one of the wealthiest foreigners in SA and he is done with SA.

Great Job.

This is really sad to hear... I know "local is lekker" but we rather desperately need outside influence to keep the economy going.
Everything is getting more and more expensive and I just don't see how this is sustainable any more.

I mean the average household was able to meet expenses and have a little cash on hand to put back into economic growth but that is fast changing.

Cost of living is going up and up but somehow inflation still only shows something like 6%. This number is a flat out lie.
Everybody I know is cutting back on whatever they can just to make it through a month. Yet we (minority tax payers) are expected to keep everything afloat somehow.

[Mephisto_Helix]

There's such a lack of positives these days that even the ostrich idiots are going to take note soon ........ hopefully it'll be too late for them though.