Eskom says action mainly for breach of contract
Eskom in dispute with coal suppliers
Eskom seeks $10 mln from coal suppliers
November 9, 2009
South African power utility Eskom has started legal action against coal suppliers to recover some R81 million for breach of contract, a government minister said on Monday.
State-owned Eskom, which produces most of its power via coal-fired power plants, is one of the biggest domestic coal consumers in South Africa -- one of the world's top coal exporters.
"Eskom has instituted legal action in the form of arbitration proceedings against the relevant parties (coal suppliers) in respect of the financial prejudice suffered by Eskom," Barbara Hogan, Minister of Public Enterprises, said in a written reply to questions in parliament.
"The cause of action relied upon by Eskom is in the main breach of contract, negligent misstatement, unjustified enrichment," she said.
Hogan did not mention any specific coal suppliers involved in the dispute. - Reuters
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