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Eskom unpacks interim Arnot coal supply arrangements

Eskom has moved to again justify its decision to terminate a 40-year cost-plus coal supply contract with Exxaro’s Arnot mine on the basis that it will be able to secure coal for the power station at a far lower rate than would have been possible from Arnot. It has also justified the inclusion of Optimum – which is in the process of being bought out of business rescue from Glencore by Tegeta Exploration and Resources, a company linked to the politically connected Gupta family – among the interim substitute suppliers.