Eskom and the business rescue practitioners for Optimum coal mine have agreed to commence negotiations regarding the coal supply agreement between the two companies.

The business rescue practitioners have agreed that Optimum coal mine will supply Eskom with coal during the negotiations at the base price of approximately R150/t and have secured financial support from Glencore for this purpose.

Optimum has therefore restarted supplying Eskom’s Hendrina power station, as of Friday, 4 September 2015.

Optimum business rescue practitioner, Piers Marsden notes: “The recommencement of supply is intended to allow for meaningful negotiations to find a sustainable solution for all parties”.

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