Tegeta and Eskom reach deal in matter on substandard coal
A R2bn penalty was originally issued to Optimum coal mine’s previous owner, Glencore, which put the mine into bankruptcy protection in August 2015
Tegeta Exploration and Resources, a company part-owned by the Gupta family, reached an arbitrated settlement over a fine levied on its Optimum coal mine by Eskom. The R2bn penalty was originally issued to the mine’s previous owner, Glencore, which put Optimum into bankruptcy protection in August 2015 after Eskom refused to amend an unprofitable coal-supply contract, and fined the producer because the fuel did not meet specifications. Tegeta, a company in which both President Jacob Zuma’s son Duduzane, and members of the Gupta family, who are friends with the President, have indirect interests, completed the purchase of the mine in 2016. "We are not at liberty to disclose the contents of the agreement but at least we can say that the matter is now resolved," Eskom spokesperson Khulu Phasiwe said. "Details cannot be divulged but the arbitrator has made an award." Glencore spokesperson Charles Watenphul declined to comment. Representatives of Gupta-controlled Oakbay Investments, which ...
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