Failure by Gupta-linked company to supply coal at Majuba eroded its stocks

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Failure by Gupta-linked company to supply coal at Majuba eroded its stocks Eskom Tegeta StateCaptureInquiry

“Every month that Tegeta has failed to supply coal to Majuba from Brakfontein is equivalent to 2.4 days, meaning that we had to go to our strategic pile and burn off that two days because it is not coming from Tegeta, and we could not replace that coal quick enough,” Mashigo told the commission.

“But the total amount, the equivalent amount of stock that Majuba lost by virtue of Tegeta not supplying coal is equivalent to 24 days,” Mashigo added.Tegeta’s failure to supply coal at Majuba forced Eskom to continuously source coal in the markets. He added that when the mine was placed under business rescue on 17 February last year, it was only at that time that Eskom had to source coal supply to replace the supply from Tegeta.

“In and around October, that is when some of the new contracts started kicking in and, we could supply more than what we were consuming and we started stockpiling more,” Mashigo said.

 

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