Public Enterprises Minister Pravin Gordhan says Eskom directly owns one coal mine called Kilbarchan Colliery.
Gordhan revealed this in a written reply to a Parliamentary question from EFF MP Marshal Dlamini, who wanted to know what the lifespan of all Eskom’s coal mines were.
While Eskom directly owns Kilbarchan Colliery coal mine, Gordhan says the power utility also indirectly owns some equity in the cost-plus mines.
He says this is as a result of ownership of a portion of the Eskom’s mine assets through the cost-plus coal supply agreements.
Gordhan says mining houses have the statutory right to mine the coal but also have the statutory obligation to rehabilitate the mine. And he says through the coal supply agreement, Eskom has the financial obligation to pay for such costs. The Minister further reveals that the reserves dedicated to Eskom can only be sold to the power utility.
He says in a case where the mining house intends to transfer its rights and obligations, Eskom would have to provide consent. Gordhan also says it should be noted that the cost supply agreements do not include BEE ownership requirements because the last cost-plus agreement was signed prior to Eskom’s current BEE Policy.
The post Eskom directly owns one coal mine: Gordhan appeared first on SABC News – Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader..