Glencore’s Optimum coal now in hands of S. African’s President family
Oakbay Investments, the firm controlled by the Gupta family and South African President Jacob Zuma’s son, completed Thursday the $145 million acquisition of Glencore’s (LON:GLEN) Optimum Coal unit.
Last year, Glencore put the mine — which is the African nation’s third-largest opencast operation — into business rescue proceedings, a form of bankruptcy. The moved followed state power utility Eskom Holdings refusal to amend an unprofitable coal-supply contract and reduce a 2 billion-rand fine.
The finalization of the deal, comes as Oakbay struggles to regain bankers’ trust.
In an e-mailed statement, Oakbay’s Tegeta Exploration & Resources said its immediate priority for Optimum is to boost production and secure the continued employment of the unit’s 3,000 employees.
The finalization of the deal, comes as Oakbay struggles to regain bankers’ trust as all four major South African banks broke all ties over criticism that its owners, the Gupta family, have undue political influence with President Zuma.
Optimum, in production since 1971, supplies coal to both export and local thermal coal customers.
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2 Comments
Gary
One would wonder how a small company like this is going to make a profit where the expertise of Glencore could not, unless they are going to get paid a hell of a lot more for the coal?
GAD1066
What is that smell….oh must be coal burning.