Coal Procurement Process

Eskom owns and operates various coal-fired power stations which among them utilise coal of different quality specifications. In addition, Eskom is a responsible corporate citizen which procures its goods and services, including coal, from sources that meet all legislative and regulatory requirements.
As a state-owned entity, the legislative framework that governs Eskom’s coal procurement and procurement in general includes, but is not limited to the Public Finance Management Act 1 of 1999 (“PFMA”), the Preferential Procurement Policy Framework Act 5 of 2000 (“PPPFA”), the Broad-Based Black Economic Empowerment Act 53 of 2003, including the Broad-Based Black Economic Empowerment Regulations, 2016 (“BBBEE”), as well as the applicable National Treasury Regulations and any amendments or updates thereof. These frameworks are incorporated in Eskom’s Procurement and Supply Chain Management Policy.
Hence Eskom’s default Coal Procurement Process is the open tender process, whereby from time to time enquiries are published on the Eskom tender bulletin as well as the National Treasury tender bulletin. Interested suppliers are kindly requested to check these tender bulletins on a regular basis and respond to the advertised tenders. Tenderers are kindly requested to familiarise themselves with the requirements as per the issued enquiries and to respond accordingly.
Please note that Eskom only procures coal from mining companies (mining right holders) and suppliers who beneficiate/process coal, who are known as value-adding suppliers. The major difference between a mining company (mining right holder) and a value-adding supplier/trader is that the value-adding suppliers do not possess mining rights, but have off-take agreements to procure coal for beneficiation (crushing, screening, blending, destoning, and washing to meet Eskom’s required coal quality specifications) from mining companies with valid mining rights. Eskom does not procure coal from traders/intermediaries who on-sell the coal without adding value.

Should you require any further assistance or clarifications on the coal procurement process, please contact our Coal Sourcing Help Desk on the following: Email: [email protected]