Gupta-owned coal mine deal gets green light

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Eskom has unfairly awarded the politically-connected Gupta family a coal supply contract at one of its power stations.

JOHANNESBURG -- The Competition Tribunal has approved a major deal involving the Gupta family.

It&39;s given the nod to the merger between Tegeta Exploration and Resources and Optimum Coal Mine.

Tegeta is jointly owned by Oakbay Investments, a company run by the Guptas, and Mabengela Investments in which President Jacob Zuma&39;s son, Duduzane is a director.

Tegeta and OCM are involved, among other things, in the production of thermal coal that is largely supplied to Eskom power stations.

The Competition Tribunal says it remains concerned about possible job losses that could arise from the deal and has recommended conditions be imposed to prevent merger specific retrenchments.

The Tribunal has also set conditions to monitor this.

Optimum was placed under business rescue last year, as it faced losing its license after announcing job cuts.

The Gupta-controlled Tegeta Resources now owns the unprofitable mine.

Optimum’s sale saves around 500 permanent jobs, while still supplying coal to Eskom’s Hendrina power station.