Optimum Coal Mine reopening a boost for Eskom – Cosatu

COSATU has welcomed the reopening of Optimum Coal Mine, saying that it will boost Eskom’s generation as it has potential to produce 13.5 million tons of the energy commodity. Cosatu’s acting national spokesperson, Matthew Parks, said the reopening of Optimum would also add to restoring employment for the more than 500 workers at the mine as well as pushing up exports of coal. The mine was at one time operating as the third-largest opencast operation in SA and supplying thermal coal to domestic and export markets.

“Its return to operation will boost Eskom’s coal supplies and badly needed export earnings for the economy,” Parks said.

“The reopening marked by the first shipment of coal exports through Richards Bay Port is a further injection in the port and a boost to Transnet’s recovery as well.”

Controversy has dogged Optimum Coal Mine for years, which was formerly owned by the Gupta family.

Liberty Coal and the National Prosecuting Authority (NPA) had jointly approached the Gauteng High Court, Pretoria, and obtained a settlement order to allow Optimum to exit business rescue, trade as a going concern and to begin the process of rebuilding the mine.

The NPA obtained a court application in its favour for two forfeiture orders on the grounds that the Gupta family bought the mine with proceeds from corruption during the State capture years.

Oakbay Investments Group’s Tegeta Exploration and Resources, a company of the Guptas, and former president Jacob Zuma’s son Duduzane bought Optimum from Glencore plc in December 2016 for $145 million (R2.72 billion).

“Whilst we support goverment’s correct efforts to hold criminals to account, we could not afford to see innocent workers and the mine’s host communities plunged into unemployment, poverty and despair due to the actions of a corrupt few,” Parks said.