Mike / Jeff -

Please find attached a copy of the slide presentation Eskom (the state owned 
utility in South Africa) will give to the Minister of Energy in early Dec.  
Eskom, as a state owned entity, is involved in the development of the Black 
Economic Empowerment mines (ie New Coal) as well as the traditionally 
white-owned Junior Miners.  Eskom is a strong proponent of the expansion of 
Richards Bay Coal Terminal or alternately the development of South Dunes Coal 
Terminal.

As the Eskom presentation details, Enron is included in their plans to expand 
their role in the RSA coal business regardless of which terminal is 
developed.  Project Springbok is moving along well, and should result in 
increasing flows from South Africa next year.  As a note Tom Kearney (London) 
and Ivan van Niekerk (Joburg) have led this effort.  Ivan is with Enron 
Metals, but it seems we have been able to borrow him on a virtual full time 
basis - he has been great.
---------------------- Forwarded by George McClellan/HOU/ECT on 11/30/2000 
02:07 PM ---------------------------


Tom Kearney
11/30/2000 11:58 AM
To: George McClellan/HOU/ECT@ECT
cc: Samuel Grossman/LON/ECT@ECT, Stuart Staley/LON/ECT@ECT, Ivan van 
Niekerk/The Metal & Commodity Co Ltd/MGLTD@MGLTD 
Subject: Eskom

George,

Eskom is presenting the attached document informally to the SA Minister of 
Energy over the weekend.   Iscor has approved the concept (but don't know 
Enron is behind it) and the Eskom Enterprises 
Board has approved it (who do know we are behind the concept).

Under the structure of the transaction, in exchange for providing the same 
throughput guarantees as other SDCT members, Enron would be allocated up to 2 
mta of the expanded RBCT allocation in perpetuity.  For a limited period 
(Francois mentioned 5 years), Black Economic Empowerment coal projects 
approved by Enron/Eskom/Govt. would have first call on the Enron 
allocation.     In addition, if it so chooses, Enron would be responsible for 
marketing the BEE coal in export markets.  Enron would become a full-fledged 
member of the SDCT and would be represented on the RBCT Board by an SDCT 
representative (which could be Enron as well).  

Bottom Line:  This is our informal invite to the dance.  RBCT is supposed to 
formally communicate with SDCT about expansion on December 6.  On December 7 
the SDCT interest group meets.  Shortly after that, Eskom will make this 
proposal to government on a formal basis and then, if Government and SDCT 
members approve, Enron will be invited to join the SDCT as a formal member.  

Let the games begin!

---------------------- Forwarded by Tom Kearney/LON/ECT on 30/11/2000 16:32 
---------------------------


"Francois Badenhorst" <Francois.Badenhorst@eskom.co.za> on 30/11/2000 13:30:14
To: <Tom.Kearney@enron.com>
cc:  

Subject: PRESENTATION


30 November 2000




Regards
Francois Badenhorst


 - BEECoal Export Ind.ppt