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South32 Divestment Makes Seriti a Key Eskom Supplier

SOUTH AFRICA
  • SOUTH32 ON TRACK TO CLOSE S. AFRICA COAL DIVESTMENT MARCH QTR
  • This divestment involves the sale of coal assets to Seriti resources, and must be confirmed by Eskom
  • South32 holds the key to Eskom's coal supply through its 10Mt contract running to 2024 - which was running at a R1bn/yr loss
  • Analysts say the coal merger will not adversely affect Eskom
  • However, with CEO De Ruyter pursuing lower coal prices to boost profitability, we could see friction between Seriti & Eskom in 2021
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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