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South Africa Seeks Coal Price Cuts to Save Eskom

Coal News - Published on Mon, 07 Oct 2019

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Bloomberg reported that South Africa is pushing coal producers to cut prices to help save Eskom, the indebted power utility that threatens to unravel the country’s finances. Mineral and Energy Resources Minister Mr Gwede Mantashe said said that at these prices of electricity, this economy is going to collapse. You have got to reduce the prices what we are saying is coal producers must contribute in ensuring that is actually addressed. We are talking to them, we are not instructing them. The steps are, one you talk to coal producers, they make a commitment, talk to renewables, they make a commitment.

Eskom, which provides about 95% of South Africa’s electricity, relies on coal to generate most of its power. Several ministries last week approached both coal and renewable energy producers to ask for lower-cost supplies as the government scrambles to rescue the unprofitable state-owned utility.

Minerals Council South Africa, the country’s mining lobby said that coal producers plan more talks with the government over the supply and cost of the fuel. Careful consideration is being given to being mindful of competition regulation.

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Posted By : Rabi Wangkhem on Mon, 07 Oct 2019
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