Dec. 10 (Bloomberg) -- Eskom Holdings SOC Ltd. plans to set up a fund to help finance mining companies owned by black South Africans and boost supply of the fuel to the state-run utility.
Eskom, generating 95 percent of the country’s power, will join Industrial Development Corp., the National Empowerment Fund and the Development Bank of Southern Africa for the fund, Malusi Gigaba, minister of public enterprises, told reporters today.
“Eight mines supply 68 percent of Eskom’s coal,” he said, and how the company buys the fuel will help to transform mining.
Eskom will spend 500 billion rand ($58 billion) through 2017 to update and build plants to bridge a capacity shortage.
Requests for interest in the fund will be sent this week or next ready to set up the plan next quarter, Chief Executive Officer Brian Dames said, declining to estimate its size.
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