OPTIMUM Coal Mine, which is owned by Gupta family company, Tegeta Resources, could lose its mining licence if its water supply to the nearby town of Hendrina is not restored, said BusinessLive citing a mining law expert.
Chris Stevens, an attorney at Werksmans, said the Department of Mineral Resources could shut down the mine, but that the usual procedure was to issue an order to take rectifying steps, failing which the licence could be revoked. This could have implications in reaching a potential sale agreement, but if such a sale amounted to a rescue of the business, the licence issues usually “came out in the wash”.
Hendrina’s water reservoir is empty and the town and surrounding settlements have been without piped water for six days after contractors at the Pullens-hope water-purification plant at the Optimum colliery shut down the operation over nonpayment of contract fees and workers’ wages.
