[miningmx.com] – DECLARING coal a strategic resource, a step that would enable government to dictate selling prices, would damage South Africa’s coal prospects yet further, said BDLive citing Mike Rossouw, chairman of the Energy Intensive Users’ Group (EIUG).
“If the coal industry becomes something where the minister can dictate customers and price, investors wouldn’t want to function under that. Nobody will put investment into the ground without an assurance of a reasonable return. So it will choke new investment and decrease supply, which is the opposite of what government wants and what is needed,” Rossouw said.
The EIUG represents the top customers of Eskom.
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