Eskom says Gupta-linked miner settles fine in arbitration
JOHANNESBURG – Tegeta Exploration & Resources, a company part-owned by South Africa’s Gupta family, reached an arbitrated settlement over a fine levied on its Optimum coal mine by power utility Eskom Holdings.
The R2-billion ($144-million) 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 with Glencore and fined the producer because the fuel didn’t meet specifications. Tegeta, a company in which both South African 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 last year.
“We are not at liberty to disclose the contents of the agreement but at least we can say that the matter is now resolved,” Khulu Phasiwe, a spokesperson for the utility, said by phone. “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 owns a stake in Tegeta, didn’t immediately reply to an email seeking comment.
“At the time of this transaction, it was an insane coal price contract with an insanely large fine,” Peter Major, director and head of mining at Cadiz Corporate Solutions, said of the Optimum sale. It’s unlikely Tegeta would have bought the asset without expecting that the issues would be resolved, he said.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
CSIR International Convention Centre (CSIR ICC) - the leading conference and events venue in Pretoria/Tshwane.
VISIT SHOWROOM
We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
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
PLUS
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
