BHP Billiton deal backdrop to new Eskom price increase

Business Day Live 13 September 2012.

ESKOM is yet to conclude a renegotiated contract with BHP Billiton for the group’s aluminium smelter in Richards Bay, KwaZulu-Natal, Eskom spokeswoman Hilary Joffe said on Wednesday.

he delay in the conclusion of the deal could be an indication that negotiations between the two companies are proving difficult. Failure to renegotiate the deal means Eskom will continue to supply power to the smelter under the commodity-linked contract — a move that exposes the utility’s balance sheet to the volatility of the aluminium price…