Several companies are considering whether to buy the Optimum coal mine in Mpumalanga, South Africa. These companies include Exxaro Resources, Seriti Resources and Glencore.
If Seriti Resources goes ahead and purchases the mine it would be a great fit as its CEO, Mike Teke, was the CEO of Optimum before it was acquired by Glencore and oversaw a lot of its growth and success for numerous years.
According to Optimum’s business rescue practitioner, Louis Klopper, Optimum has received a number of enquiries from interested parties since being placed under administration.
The Optimum coal operation should be a asset that gives significant ROI as it supplies coal to Eskom.
However, in 2015 Glencore placed the mine in bankruptcy protection following Eskom’s refusal to renegotiate what it called “an unprofitable supply contract” so any issues surrounding that point of contention will have to be addressed.
Another potential hurdle facing potential purchasers is Kruger and Co Attorney’s launching an court application on behalf of the National Union of Mineworkers to set aside the resolution taken by the directors of Optimum coal mine and to remove the business rescue practitioners who were appointed to administer Optimum’s business rescue proceedings.