[miningmx.com] – THE Gupta family has denied that coal it supplied to South African power utility, Eskom, had failed four quality tests as reported by the Sunday Times on September 13 which added the contract was worth about R4bn.
Our coal has consistently beaten the daily test. It was only in the month of August that we had some inconsistencies between our internal testing laboratory and the Eskom laboratory,’ Nazeem Howa, a spokesman for the family, told Eyewitness News.
The Sunday Times reported that Tegeta Exploration and Resources had been trying to secure the deal since 2011 but was rejected because of their substandard coal. “We’ve been battling to get the supply agreement with Eskom, not based on any tests but purely on commercial terms,” said Howa.
The Gupta family, led by brothers, Ajay and Atul, have been a controversial presence in South Africa allegedly benefitting from its relationship with the country’s president, Jacob Zuma.
The paper said four Eskom executives were suspended for questioning the deal which is to supply coal for 10 years to Eskom’s Majuba Power Station in Mpumalanga.
After three failed bids, Tegeta was given the contract after a fifth test conducted on its coal found the product to be marginal, the Sunday Times said.
Click here to read the full article
