COAL COMMITMENTS
Optimum business rescuers seek to reduce supply to Eskom
Optimum Mine stands to earn about R200m a month if its business rescue practitioners can persuade Eskom to reduce the mine’s coal commitments. Optimum is contracted by Eskom to deliver 400,000 tonnes of coal a month, but wants to reduce this to 200,000 tonnes. Business practitioner Louis Klopper told Business Day this week that an unconditional offer had been made by global energy commodity trader Vitol to take 200,000 tonnes a month at about R1,000/tonne should Eskom agree to Optimum’s proposal. This is a higher price than that paid by Eskom. The additional income would be used to restore Optimum and its sister mine — Koornfontein (also under business rescue). It would also be used to repair the damage and neglect caused when the mines were controlled by Gupta-owned Tegeta Exploration and Resources. "We have to address the equipment problems at Optimum and the state of the mine, and get suppliers back on board. There is a lot to be done," Klopper said. "The mine has … collapsed.… W...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.