Seriti Resources cleverly spun a narrative following conclusion of a coal sales agreement (CSA) with Eskom stating that the South African power utility had actually scored a plenitude of benefits from the deal.
The CSA was mainstream news last month because Eskom was seen to be agreeing to a doubling in the cost of coal for its Duvha power station from South32, an Australian firm, which then planned to sell the mine supplying Eskom to a black-controlled SA firm, Seriti Resources.
How, the question went, could Eskom and the National Treasury agree to the escalation of this type when the Zondo Commission was still picking through the state capture morass of which coal supply to the utility was a chief element of the plot?
Doug Gain, Seriti CFO, said during the announcement of Seriti’s purchase of South32’s 91% stake in South African Energy Coal (SAEC) that, in fact, the company had agreed to give up entitlement to the infrastructure – essentially a conveyor – from the mine (Ifalethu in Mpumalanga province) as part of the new CSA.
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