Eskom slaps Optimum Coal with R105 million penalty amid strike

Eskom has slapped the Gupta-owned Optimum Coal Mine with R105 million penalty for defaulting on its contractual agreement.

Operations at the Mpumalanga mine have been halted due to a shut down by workers.

Approximately 2 000 miners demanded clarity on the future of the mine after the Bank of Baroda which was responsible for administering their salaries stopped doing business in South Africa. Workers are concerned they will not receive wages on Friday.

READ: Workers shutdown Gupta-owned Optimum mine amid job uncertainty

Eskom spokesperson Khulu Phasiwe says the mine which supplies about 3.5 million tons of coal annually has admitted to experiencing operational difficulties.

They have written a letter to Eskom essentially declaring what they call a force majeure which basically means that they are finding it difficult for them to continue supplying us with coal. This follows yesterday's protests, but even before then they were beginning to default on their agreement with us.

Khulu Phasiwe, Eskom spokesperson

We have imposed a penalty to them of about R105 million and because of those dynamics and other factors, they have said to us that they are finding it difficult to operate but we will see because we continue to engage with them so that we can make sure they meet their obligations.

Khulu Phasiwe, Eskom spokesperson

Read: Optimum files papers in bid to force Bank of Baroda to continue business

The contract is expected to end this year.

Click on the link below to hear more from Phasiwe....


Recommended

by NEWSROOM AI
Read More
Workers shutdown Gupta-owned Optimum mine amid job uncertainty

Workers shutdown Gupta-owned Optimum mine amid job uncertainty

NUM's Livhuwani Mammburu says members want answers from management over the mines future and whether they will get paid this week.

Where in the world is Ajay Gupta?

Where in the world is Ajay Gupta?

There have been conflicting reports about the whereabouts of the fugitive Gupta brother - from Mpumalanga to China.

Eskom inquiry: Those who don't know Koko can be easily fooled - Mantshantsha

Eskom inquiry: Those who don't know Koko can be easily fooled - Mantshantsha

Deputy Editor at Financial Mail, Sikonathi Mantshantsha says Parliament is setting a wrong precedent by allowing people to lie.

Things we invented in 2017

Things we invented in 2017

No, this is not about Bell Pottinger or Donald Trump, but actual innovations that will affect us in the future.

'Board minutes show Gupta firm's plans to pull the plug on Eskom coal supply'

'Board minutes show Gupta firm's plans to pull the plug on Eskom coal supply'

Gupta-linked Tegeta wanted Eskom to up money it pays for coal but the utility retaliated with legal action, says AmaBhungane.

Claims that Gupta-linked Tegeta threatened to cut Eskom's coal supply

Claims that Gupta-linked Tegeta threatened to cut Eskom's coal supply

According to AmaBhungane leaked minutes of an Eskom meeting on Friday reveal it's retaliated by threatening to approach the court

The drone and satellite could become as important as the tractor to farmers

The drone and satellite could become as important as the tractor to farmers

Farming advances will add precision, both to reduce waste and costs while improving yield and being kinder to the environment.

Zola Tsotsi and Brian Molefe to answer to Parly state capture probe

Zola Tsotsi and Brian Molefe to answer to Parly state capture probe

Karima Brown says if they don't appear, this will raise more questions and they could be subpoenaed.

Piers Marsden informed the Hawks in July 2016 of dodgy Eskom transactions

Piers Marsden informed the Hawks in July 2016 of dodgy Eskom transactions

Business rescue practitioner Piers Marsden testified on the state capture inquiry into Eskom in Parliament on Wednesday.

Optimum Coal Mine in the spotlight as Eksom inquiry continues

Optimum Coal Mine in the spotlight as Eksom inquiry continues

The inquiry heard from business rescue practitioner Piers Marsden testifying about the sale of Glencore's Optimum.

Popular articles
Caster Semenya calls out IAAF for publicising expert witness list

Caster Semenya calls out IAAF for publicising expert witness list

Olympic champ Caster Semenya is challenging proposed IAAF rules that may force her to lower her testosterone levels.

'Parliament should have proper inquiry into Mkhwebane's fitness to hold office'

'Parliament should have proper inquiry into Mkhwebane's fitness to hold office'

DA's John Steenhuisen says Parliament should investigate the public protector after the findings against her.

I had nothing to do with VBS - Florence Radzilani

I had nothing to do with VBS - Florence Radzilani

Vhembe District former mayor Florence Radzilani says the Provincial Forensic Investigation exonerated her from the VBS scandal.

Pule Mabe was never alone in hotel room with assistant - ANC NEC's Sdumo Dlamini

Pule Mabe was never alone in hotel room with assistant - ANC NEC's Sdumo Dlamini

ANC's Sdumo Dlamini says party spokesperson Pule Mabe free to return to work after he being cleared of sexual harassment charges.

Black gay men can be misogynists, and here's what a few have to say about it

Black gay men can be misogynists, and here's what a few have to say about it

Presenter Eusebius McKaiser hosted a panel discussion with black gay men exploring entrenched patriarchy and the dynamics at play.

Why rooibos tea price remains high despite improved rains

Why rooibos tea price remains high despite improved rains

MD at Rooibos Ltd, Martin Bergh explains the current high price of Rooibos tea.

[WATCH] Owner catches car thief off guard and thwarts vehicle theft in Springs

[WATCH] Owner catches car thief off guard and thwarts vehicle theft in Springs

The vehicle's owner came out of the store just in time to scare away the man attempting to steal his bakkie.

Johannesburg’s drive to create a smart city is rolling out

Johannesburg’s drive to create a smart city is rolling out

Vumatel is deploying 15 000 CCTV security cameras over the next five years to make Joburg's streets safer.