(Ecofin Agency) - South Africa’s power utility, Eskom, said it might terminate its collaboration with coal supplier, Anglo American, as it looks for a cheaper coal provider. According to Eskom’s Group Executive for Generation, Matshela Kolo, the firm pays too much for the coal it gets from one of Anglo American’s mine.

“It's unacceptable and we will change and we will go to unconventional suppliers,” Matshela Koko. Eskom said Anglo American’s New Denmark mine is its most expensive coal supplier. “The Tutuka power station was paying Anglo American R1,600 per tonne,” he added.

However, the miner’s spokesperson, Moeketsi Mofokeng, said that over the past year, Eskom bought the ton of coal at R668.

For the 2015-16 year ended in March, Eskom recorded a net profit of R4.6 billion ($308,706,000) against R200 million ($13.42 million). The firm which helped the country face the power crisis which hit it, said it secured 57% of its funding for the new financial year.

Louis-Nino Kansoun