PARLIAMENT - Coal suppliers need to help efforts to turn around Eskom by being reasonable on their pricing, Public Enterprises Minister Pravin Gordhan said on Tuesday.
"We have got to lower the price of coal. We are talking to coal suppliers to make sure they contribute, they have to share the burden," Gordhan said while answering questions in the National Assembly.
He said Eskom was returning to the practice of cost-plus mines, in which power plants rely on mines located next to them at preferential prices, after moving away from the practice during the period in which the power utility was extensively plundered by politically connected companies in the so-called state capture scandal.
It ensured quality control and transparency in pricing, he said.
Eskom posted its results for the first six months of the financial year last week, and cautioned that it would probably again register a loss of around R20 billion for the full year.