ESKOM AND BHP BILLITON TO AMEND PRICING AGREEMENTS

Monday, 5 April 2010: After lengthy discussions, Eskom and BHP Billiton have agreed to amend their current long-term Negotiated Pricing Agreements (NPAs) for the supply of power to BHP Billiton's Mozal smelter in Mozambique and their Hillside and Bayside smelters in South Africa.

This is a significant milestone that results in a new pricing path which will not be linked to commodity pricing and foreign currency.

Eskom's Interim Executive Chairman, Mpho Makwana said: "This is a historic step in the right direction for Eskom and the country. These agreements were concluded in a period of excess capacity and changes in the current environment have required that we adopt a different approach."

Makwana added that Eskom commended the commitment of BHP Billiton to willingly engage in discussions to find a mutually beneficial solution for both parties and for South Africa.

Eskom is confident that the final agreements will be signed by the third quarter of this year. The agreement will require approval by the National Energy Regulator of South Africa (NERSA).

Statement issued by Eskom, April 5 2010

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