S. Africa's Eskom Expects New Coal Contracts to Recover Supply

(Bloomberg) -- South Africa’s Eskom Holdings SOC Ltd. is still running low on fuel at more than half of its power stations and expects to finish supply contracts in October that will replenish the stockpiles.

There are 10 of Eskom’s 15 baseload stations throughout the country that have less than three weeks of coal, Khulu Phasiwe, a spokesman for the utility, said Tuesday. “Stock levels remain low because they are not being replenished fast enough.”

Eskom has blamed companies that are under business rescue for not meeting their contractual output. Some of the affected plants -- Hendrina, Komati and Majuba -- are supplied by mines owned by Tegeta Exploration and Resources Ltd., a company linked to members of the politically connected Gupta family’s Oakbay Investments Ltd.

“Eskom is confident that new contracts will be in place within this month so that we can start the process of rebuilding the coal stock levels,” Phasiwe said.

To contact the reporter on this story: Paul Burkhardt in Johannesburg at pburkhardt@bloomberg.net

To contact the editors responsible for this story: James Herron at jherron9@bloomberg.net, Jacqueline Mackenzie, Helen Nyambura

©2018 Bloomberg L.P.