Think long

For some time now, State-owned electricity utility Eskom has been signalling that it intends overhauling the way it sources coal. Ever since Brian Molefe took over as CEO, he has questioned whether it is appropriate for Eskom to invest directly in mines through cost-plus supply contracts with coal miners. Using a food analogy, he has argued that Eskom should buy bread rather than own the bakery. The first practical outward sign of the shift came with the controversial decision to terminate a 40-year contract with the Arnot mine, operated Exxaro.