22 February 2018

South Africa: Gupta-Owned Optimum Coal Blames Eskom, Transnet for Cash Crisis

Photo: Daily Nation
(file photo)

Optimum Coal Mine management has laid the blame for the company's severe financial woes at the door of state-owned companies Eskom and Transnet - this despite lagging far behind on its coal supply obligations to the power utility.

George van der Merwe, CEO of Optimum Coal Mine, has said that as from the beginning of this year, Transnet had suspended its rail facilities, Eskom was now deducting penalties from payment due to the company and Bank of Baroda was allegedly failing to honour a court order that compelled it to retain the company's banking facilities.

Van der Merwe was addressing members of the National Union of Mineworkers who had downed tools in their quest for information about the sale of the mine and the financial woes of the company. The labour protest involved around 500 full-time staff and 2,000 contract workers.

Without access to the Transnet rail facilities, Optimum was unable to move export coal to the Richards Bay Coal Terminal, usually a key source of revenue, Van Der Merwe said.

He said income from export coal had formed part of the mine's initial business model but that it had now become impossible to generate...

More on This

'We Can't Support Our Families' - Anger Mounts As Workers At Gupta-Owned Coal Mine Down Tools

Mineworkers at the Gupta-owned Optimum Coal Mine in Mpumalanga downed tools on Wednesday over the uncertainty of their… Read more »

See What Everyone is Watching

Copyright © 2018 Daily Maverick. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.