Question NW1270 to the Minister of Public Enterprises
28 July 2017 - NW1270
Lorimer, Mr JR to ask the Minister of Public Enterprises
(1) (a) What quantities of Eskom’s coal supply were purchased (i) directly from companies that mine it and (ii) from intermediaries in each of the past five financial years and (b) what were the combined annual total payments made in each case; (2) whether Eskom purchases coal from any mining companies that are not 50% + 1 Black Economic Empowerment (BEE)-owned; if not, what is the position in this regard; if so, (a) on which grounds and (b) what are the further relevant details; (3) whether Eskom has put any policies in place to regulate the purchasing of coal from companies that (a) are and (b) are not 50% + 1 BEE-owned; if not, why not; if so, (4) will she furnish Mr J R B Lorimer with copies of the specified policies; if not, why not; if so, by what date?
Reply:
(1)(a)
Table 1 below shows quantities of Eskom’s coal supply purchased directly from companies that mine it and from intermediaries over the past four financial years. Information for financial year 2016/17 will be made available once it has been published.
Table 1: Quantities of Eskom’s coal supply (kilo tonnes)
|
Volumes sourced |
2012/13 |
2013/14 |
2014/15 |
2015/16 |
2016/17 |
|
Own supply (i)[1] |
119 640 |
115 343 |
115 521 |
111 122 |
113 385 |
|
Intermediary (ii) |
4 247 |
4 443 |
4 196 |
3 948 |
3 841 |
|
Own Supply + Intermediary |
2 550 |
2 190 |
1 951 |
3 631 |
3 024 |
|
TOTAL |
126 437 |
121 976 |
121 668 |
118 701 |
120 250 |
(b)
Table 2 below combined total annual payment for Eskom’s coal supply purchased directly from companies that mine it and from intermediaries over the past four financial years. Information for financial year 2016/17 will be made available once it has been published.
Table 2: Combined annual payments of Eskom’s coal supply (Rands)
|
Annual Payments |
2012/13 |
2013/14 |
2014/15 |
2015/16 |
2016/17 |
|
Own supply |
28 011 750 253 |
31 085 536 691 |
35 145 518 292 |
36 154 662 673 |
38 684 634 701 |
|
Intermediary |
1 417 803 118 |
1 749 882 580 |
1 716 350 676 |
1 518 313 159 |
1 724 573 826 |
|
Own Supply + Intermediary |
787 892 666 |
818 056 450 |
815 939 974 |
1 466 286 871 |
1 331 345 953 |
|
TOTAL |
30 217 446 037 |
33 653 475 720 |
37 677 808 942 |
39 139 262 702 |
41 740 554 480 |
(2)
Yes, Eskom purchases coal from mining companies that are not 50%+1 black owned. (a) Eskom’s procurement is guided by the PPPFA and by Eskom’s internal 32-1034 policy (b) These policies are not prescriptive in stating to which suppliers Eskom must contract.
(3)(a)(b)
Eskom has no policies but has formulated a board-approved strategy to transform black ownership in the coal supply value chain.
This strategy was approved in October 2012 and it articulates an aspiration to procure more coal from suppliers that are 50% + 1 black owned. But if they were unable or unwilling to meet Eskom’s cost and quality targets, the utility would default to other companies that are able to meet these objectives.
Eskom formulates procurement policies that are in line with the rules set out in the PPPFA.
(4)
No, there are no policies to furnish.
Remarks: Reply: Approved / Not Approved
Mr. Mogokare Richard Seleke Ms. Lynne Brown, MP
Director-General Minister of Public Enterprises
Date: Date:
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Coal supplied directly from the companies that mine it. ↑