According to Mineral Resources Minister Susan Shabangu, coal exports may be limited if coal companies in South Africa keeps threatening to disrupt the coal supply to state-owned electricity utility, Eskom.
Personally I think that these companies will then just take their investment money elsewhere or reduce production to fit in with the new quotas.
My opinion is that a better solution to the problem of trying to limit exports would be to allow Eskom to buy coal at market-related prices. If the mining companies still prefer to export, demand payment of company income tax in the form of coal at a specific quality delivered to Eskom at market related prices. So instead of paying taxes in cash, the mining companies can pay in coal, at a pre-determined, market-related price per tonne. That way the mining companies get to pay less taxes and are able to sell more coal at a fair price. Eskom also benefits by not having to negotiate prices with each company - it can then focus on the business of supplying electricity instead of playing legal politics.
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