Exxaro exposes favouritism in Eskom contracts

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The Chief Executive of mining company Exxaro has told the Eskom Inquiry that they had been forced out of contracts to supply coal to Eskom power stations in favour of Gupta-owned mining company Tegeta.

Mxolisi Mgojo says Eskom had cancelled several coal supply contracts and declined to provide crucial funding for a new mine.

He says Public Enterprises Minister Lynne Brown had blocked funding for a new shaft that would have ensured they continued to supply high grade coal.

Mgojo says his greatest difficulty was explaining to workers why they would lose their jobs.

He says: “The fact that as CEO I would have to stand in front of 1 500 people and explain to them that there is coal in the ground, we are capable of doing it, we have come up with plans and in spite of that the mine is put into a situation whereby it is to close, was difficult.”