When the Gupta-owned Tegeta Resources bought Optimum coal mine from Glencore a year ago, the transaction had everyone trying to figure where the money would be made. Optimum was tied into a loss-making contract with Eskom to supply Hendrina power station at a price of R150 a tonne until 2018. Previous owner Glencore has said that the break-even price for the mine was R400 a tonne. The mine had also just been fined R2bn by Eskom for delivering substandard coal. Following these punitive measures from Eskom, the mine applied for business rescue. It was these conditions, which were unusually harsh, that caused then public protector Thuli Madonsela to conclude in her State of Capture report that Eskom intentionally pushed Optimum into business rescue, presumably to make it available for purchase by Tegeta. Tegeta bought Optimum from its creditors on the eve that it received notice it would shortly lose banking facilities on the suspicion of involvement in money laundering. When questione...

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