Mining

Eskom did not provide us with coal pre-payments: Mgojo

EXXARO Resources CEO, Mxolisi Mgojo, said his company had not “at any point” received pre-payments or pre-purchases of coal from Eskom, the South African power utility. Mgojo was giving evidence in South Africa’s Parliament regarding the utility’s claim it frequently paid coal producers before they supplied coal.

“Exxaro has not at any point in time received any pre-payments or pre-purchases of any nature including in relation to coal or for capital. Exxaro has no knowledge of any Eskom policy dealing with pre-payments or pre-purchases,” Mgojo was quoted to have said in an article produced by BusinessLive.

“As far as Exxaro is aware, Eskom does not make pre-payments to any other major miners in the industry. The so-called pre-payment to Tegeta for coal is the only instance to our knowledge where such so-called prepayment was made,” he said. In 2016, Eskom made a R659m ‘pre-payment’ to the Gupta family company, Tegeta Exploration ahead of the company buying Optimum Coal out of business rescue.

In a 110-page submission including annexures made to Parliament, Mgojo said Eskom had “… unlawfully pushed Exxaro out of the coal supply space and contracted with third party/parties at a considerably higher cost to the fiscus”.

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Source: miningmx.com