HomeCoalNew bidder for Optimum Coal assets

New bidder for Optimum Coal assets

South Africa’s state-owned African Exploration Mining and Finance Corporation, or AEMFC is leading a consortium that will submit a bid for the highly contested Optimum Coal assets.

The AEMFC believes that the Optimum Coal transaction will be fundamental to the country’s energy security, and is strongly supportive of ensuring that these assets are awarded in a transparent, responsible and fair manner.

“We believe there exists, through this consortium and within our bid for Optimum Coal and its associated assets, a significant potential to demonstrate the value inherent in a workable and sustainable South African Public Private Partnership (PPP),” says Sizwe Madondo, Chief Executive of AEMFC.

“Our joint commitment to the transformation of the mining sector – and our partner’s proven track-record of operational excellence – can deliver meaningful and tangible growth for Optimum Coal.”

Our successful bid would also ensure that through this PPP, the state not only demonstrates efficient joint custodianship of a strategic national asset, but also its investment in a proactive strategy to ensure energy security for all South Africans.” 

The consortium has also confirmed that is has the guaranteed funding ability and operational expertise to create a commercially viable business that optimises the asset to the benefit of its shareholders, the State and the people of South Africa. 

Furthermore, compensation of the workers is a critical priority of the consortium, as is achieving shared value by providing a structure in which the communities and workforce surrounding the assets will benefit from ownership in the asset and/or operations,

Madondo concludes, “We view this transaction of national significance, and through a team of reputable and experienced sector experts who invest in rigorous due diligence processes, together, we can build South Africa’s image; whilst instilling confidence within the local and global investor community that South Africa is open for business on commercially sound terms that benefit all South Africans.”