AEMFC says will submit bid for Optimum assets

Coal stockpile

Coal stockpile

17th January 2019

By: Marleny Arnoldi

Deputy Editor Online


Font size: - +

An African Exploration Mining and Finance Corporation- (AEMFC-) led consortium on Thursday announced that it would submit a bid for the Optimum Coal assets, which are currently in business rescue.

State-owned AEMFC believed the Optimum Coal transaction would be fundamental to the country’s energy security and is strongly supportive of ensuring that these assets are awarded in a transparent, responsible and fair manner.

“We believe there exists, through this consortium and within our bid for Optimum Coal and its associated assets, a significant potential to demonstrate the value inherent in a workable and sustainable South African public–private partnership (PPP).   

“Our joint commitment to the transformation of the mining sector – and our partner’s proven record of operational excellence – can deliver meaningful and tangible growth for Optimum Coal,” said AEMFC CE Sizwe Madondo in a statement.

He added that the consortium’s successful bid would also ensure that, through this PPP, the State not only demonstrated efficient joint custodianship of a strategic national asset, but also its investment in a proactive strategy to ensure energy security for all South Africans.

Meanwhile, drafting of the business rescue plan is under way and legal adviser to the process Bouwer van Niekerk on Wednesday anticipated that a preliminary plan would be submitted for creditor approval by the end of next week.

Project Halo – the preferred bidder to date – has committed R600-million towards implementation of the business rescue plan and offered to purchase the Optimum assets for R3.6-billion.

The business rescue practitioners, legal advisers, Project Halo and other stakeholders such as Eskom have been in continuous discussions around modifying the business rescue plan, before it is submitted for creditor approval.

The Optimum assets started struggling when the controversial Gupta family, in 2016, stopped investing capital into the coal mines’ operation.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online



Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

John Deere (Pty) Ltd
John Deere (Pty) Ltd

In 1958 John Deere Construction made its first introduction to the industry with their model 64 bulldozer.


Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.146 0.181s - 88pq - 2rq
1: United States
Subscribe Now
2: United States