Eskom dumps coal contract with Exxaro

Eskom will not renew its contract with Exxaro, citing dissatisfaction over the quantity of coal delivered.

FILE: Eskom's Arnot Power Station in Mpumalanga. Picture: Supplied.

JOHANNESBURG - Eskom says it's not renewing it's coal supply contract with Exxaro which comes to an end this month.

The utility is bowing out of a 40-year contract with the mining company, and says it's now seeking coal bids for its Arnot plant in Mpumalanga.

Eskom's Khulu Phasiwe says the parastatal has always been satisfied with the quality of Exxaro's coal but not the quantity.

"We issued a request for proposal to the bidders out there, asking anyone who is interested to bid for the same contract to submit their documents. At the end of the first quarter next year, we should be ready to announce the name of the winning bidder."