Image By: Bianke Neethling/News24
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Coal from the Optimum Mine is once again moving through the Richards Bay Coal Terminal (RBCT), marking the end to yet another torrid chapter for the formerly Gupta-owned mine.
After months of challenges, the new owner of Optimum Coal – Liberty Coal – has taken over operations and on Monday night sent the first consignments of coal to the privately owned coal terminal.
The coal mine was previously owned by the notorious Guptas, and allegedly played a central role in the family’s state capture project. Placed into business rescue in early 2018, a creditor-approved rescue plan envisaged the mine would be taken over by Liberty.
Contentious ownership
Liberty is owned by Daniel McGowan, a former Gupta associate who had acquired a majority of creditor claims against Optimum but who has distanced himself from the unlawful activities of the Guptas.
The implementation of the rescue plan was, however, scuppered when the National Prosecuting Authority (NPA) obtained a preservation order over the mine and went on to pursue a forfeiture order which, if successful, would have had the mine seized by the state.
In January this year, the NPA settled with Liberty which, in terms of the agreement, will pay the Criminal Asset Recovery Fund R461 million.
While the implementation of the rescue plan could resume, a critical last hurdle was the lifting of RBCT’s suspension on Optimum’s export allocation and getting Transnet trains back to the mine’s rail siding.
“Yesterday evening [8 April] marked a historic milestone for Liberty Coal as the first train arrived at Optimum Coal Mine in Mpumalanga to commence the transportation of Liberty’s coal to RBCT,” Liberty said in a statement.
Imagae By: RBCT
Finalised agreements
This follows the finalisation of arrangements between Liberty Coal and Transnet, the company said.
“This is a proud moment for Liberty Coal, and all of its stakeholders including the employees, service providers, local communities and NUM [National Union of Mineworkers], who joined Liberty Coal to celebrate the arrival, loading and departure of Liberty Coals’ first train to RBCT. The atmosphere at the rail siding was emotional and electric,” said Liberty Coal’s CFO Ulrich Bester.
“Liberty Coal wishes to extend its thanks to all parties involved in what has been a protracted battle to acquire Optimum Coal Mine and last night was a significant milestone in the rehabilitation of the Optimum Mine to restore it to its former glory.”
Liberty further thanked Transnet for working “quickly, efficiently and diligently” through their internal regulatory processes to ensure Liberty Coal was able to secure its position on the weekly rail schedule.
Although Liberty has taken over Optimum’s operation, the business rescue practitioners are still duty-bound to ensure that the adopted rescue plan is implemented and that creditors are made whole.
