South Africa: Mining merger will not affect coal demand, says Competition Commission
The Competition Commission has reassured that the upcoming merger between trader Glencore and mining company Xstrata will not affect the demand for coal, particularly for Eskom. In a statement, the Commission head Thembinkosi Bonakele says that reviews of the coal sector and trends identified through the potential merger would continue to ensure stability in the market. The Commission is looking at Eskom, whose growing demand for coal is a concern of the merger, as well as the industry’s increasing exportation – especially to India – as Eskom’s contrats with coal mines expires.
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