HomeEnergy MineralsOptimum declares force majeure

Optimum declares force majeure

Optimum Coal’s
Koornfontein mine
Johannesburg, South Africa — MININGREVIEW.COM — 25 May 2010 – South African coal mining and exploration group Optimum Coal says it has declared a force majeure event in terms of its coal marketing agreements with BHP Billiton, Energy Coal South Africa (Becsa) and Mercuria Energy Group, as a result of continued Transnet Freight Rail (TFR) industrial action.

“We shall continue to monitor developments, and as soon as normal transport services are restored by TFR, we shall again be in a position to perform our contractual obligations to BHP Billiton, BECSA and Mercuria, whereupon we shall withdraw the force majeure notice given in terms hereof,” said Optimum Coal CEO Mike Teke.

Transnet last week declared a force majeure event in terms of its agreement with Optimum Coal as a result of industrial action.

Teke has said that despite the Transnet strike, both Optimum Collieries and Koornfontein Mines continue to produce coal for Eskom and for the export market.