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AfrElec COAL AfrElec
Exxaro Resources sees European
demand for SA coal continuing
SOUTH AFRICA SOUTH African diversified miner Exxaro despite declines in export pricing. Although
Resources expects increased European demand pricing has held up relative to the export market,
for South African thermal coal to carry on well indications of pricing pressures are observed for
into next year as Europe continues to seek inde- products destined for export,” the company said.
pendence from Russian energy sources, Mining In terms of the iron-ore market, Exxaro has
Weekly reports. predicted a relatively flat global steel production
Also, South African thermal coal exports into level for the coming year, writes Mining Weekly.
markets for high-calorific coal, such as South The JSE-listed miner, however, noted that the
Korea and Japan, present additional opportuni- net outcome between key market opportunities
ties in the year ahead, Exxaro said in a December from higher steel production in China and the
1 pre-close update for the financial year ending risk of seaborne supply once again falling short
December 31 (FY22). of expectations would determine price levels for
According to Exxaro, the anticipated global 2023.
gas trade flows and market prices are expected With respect to ongoing challenges in freight
to remain supportive of seaborne thermal coal rail network performance, Exxaro said it would
demand and prices beyond the European winter continue to respond with its market-to-resource
months. At the same time, a stronger demand optimisation strategy, ensuring uninterrupted
from the Pacific is expected as South African operations and a diversified export flow by
coal continues to trade at a discount to Austral- trucking coal to alternative ports.
ian coal. “We continue evaluating alternative logistical
As for the domestic market, “demand for options to evacuate our product,” the company
both sized and unsized product remains strong said as quoted by Mining Weekly.
ABB fined $144mn for Eskom graft
SOUTH AFRICA SWISS engineering and technology giant will be used “to assist in building South Afri-
Asea Brown Boveri (ABB) will pay more than ca’s capacity and resources in its ongoing fight
ZAR2.5bn ($144mn) in punitive reparations to against serious corruption,” the prosecutors said.
South Africa over its part in alleged corrupt deals According to the NPA, the settlement “rep-
linked to the struggling power utility Eskom’s resents a bold and innovative step towards
Kusile power station, AFP reports. accountability and justice for alleged offenders,
The Kusile coal-fired power station near particularly in the form of restitution for the seri-
Johannesburg, which ABB helped to construct, ous crimes committed at Eskom during the state
is one of the biggest in the world. The plant was capture period.”
dogged for years by delays and allegations of The deal was negotiated with partner coun-
corruption, design flaws and cost overruns, the tries including Italy, Germany, the United States
media agency writes. and Switzerland, says AFP. In October eight peo-
The National Prosecuting Authority (NPA) ple, including the former CEO of Eskom, Mat-
said in a statement on December 1 that its Inves- shela Koko, were arrested on corruption charges
tigative Directorate had finalised a settlement linked to a multi-million-dollar contract with
agreement with ABB. ABB.
“ABB has acknowledged liability and taken In the most recent development, the Swiss
responsibility for the alleged criminal conduct of engineering group has also been fined 4mn
its employees involving contracts with Eskom,” Swiss francs ($4.3mn) by the country’s Attorney
the NPA said in the statement, adding that ABB General in connection with a bribery case in
has agreed to pay over ZAR2.5bn in “punitive South Africa, Reuters reported on December 2.
reparations” to South Africa. The Attorney General’s office on Friday said
ABB’s payment must be made into South the penalty was imposed on ABB for “not hav-
Africa’s criminal asset recovery account within ing taken all necessary and reasonable organi-
60 days of December 1 and is in addition to the sational provisions in order to prevent bribery
ZAR1.6bn that ABB paid to Eskom in 2020. It payments to foreign officials in South Africa”.
P10 www. NEWSBASE .com Week 49 07•December•2022
