>Glencore, in which President Cyril Ramaphosa previously served as chairperson
>Ramaphosa was in partnership with Glencore while a director of Shanduka Group, a diversified industrial company with significant coal mining interests including a stake in OCM – later sold to Gupta-owned Tegeta Resources in 2016.
“Eskom loses billions on coal contracts”
https://mg.co.za/article/2019-04-05-00-eskom-loses-billions-on-coal-contracts/
5 Apr 2019
Broke state power utility Eskom is losing billions of rands by paying different prices to suppliers for the same quality coal.
The result of this is a loss of R1.4-billion, at worst, on two contracts alone. Eskom is paying one supplier, Glencore, double the price it is paying another, smaller supplier for the same quality coal.
An analysis of a spreadsheet of some of Eskom’s short- and mid-term contracts entered into last year, and seen by the Mail & Guardian,show a R343.41 difference between Glencore’s R607.01/tonne price for coal (with a calorific value of 20.5) and the cheapest supplier of the same quality coal, Stuart’s Coal, which is priced at R263.63/tonne.
The analysis also revealed Eskom has been paying five different prices to five different companies, including Glencore and Stuart’s Coal, for the same quality coal.
In another example, Eskom contracted Glencore to deliver 21.50CV coal to Kriel power station at R665.85/tonne, but it also contracted Welgemeend Colliery to deliver the same quality coal to Matla power station at R342.28/tonne. The saving on this transaction, had Eskom paid the same, would have been R291-million.
It is critical to note that the prices listed here do not include transportation costs, which, depending on mode of transport and distance between the mine and the power station, could easily add a further R90-R300 per tonne.
“The high price of coal connections”
https://mg.co.za/article/2019-10-11-00-the-high-price-of-coal-connections/
11 Oct 2019
The taxpayer will be burdened with a roughly R10-billion bill over the next six years, because Eskom has failed to negotiate a standard price for the coal it burns to keep the lights on.
The Mail & Guardian can reveal that Eskom has contracted 16 coal-producing companies to provide it with more than 70-million tonnes of coal in the next six years at a cost of more than R38-billion.
But Eskom could have saved about R10-billion — or nearly R4.5-million a day — had it negotiated a better deal.
Responding to M&G questions, Eskom said it was untrue that it has failed to negotiate coal prices but rather it ended up paying higher prices due to a rapid decline of coal stock. [BS! Creating a demand as there are 1 000s of hectares of land in the Lephale area with shallow coal which can be mined. Now the Russia/Ukraine conflict has increased prices global. All orchestrated as crisis are good for big business.]
One former Eskom executive asked: “Why was it wrong when the Guptas were being paid more and it is now okay when it is companies such as Glencore and Seriti?” adding that if there was no reason to pay such high prices then, why now?
A senior Eskom official, who did not want to be named, told the M&G that the prices varied from one mine to another: “Prices from old contracts were cheaper … emergencies created from 2008 and future years pushed prices up. Transport prices are currently inflated to benefit suppliers with connected officials. Some prices are inflated — claiming good quality coal, which is not true.”