THE UGLY

Finweek English Edition - - THE WEEK -

De­tails of Eskom’s sweet­heart deal with the Gup­tas’ Oak­bay-owned Tegeta Re­sources show why the Gup­tas could sud­denly run Op­ti­mum Col­liery prof­itably af­ter com­mod­ity gi­ant Glen­core was forced to place it un­der busi­ness res­cue last year, fol­low­ing a R2.5bn fine from Eskom for de­liv­er­ing sub-stan­dard coal. Not only is the price Eskom will pay Tegeta for coal from the same Op­ti­mum mine for its Arnot power sta­tion on par with ex­port par­ity prices, mak­ing it among the most lu­cra­tive deals for do­mes­tic coal sup­plies at a price of R510 a ton ex­clud­ing trans­port costs, but it also man­aged to con­vince Eskom to pre­pay over R586m for sup­plies, re­ported.

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