NUM rails against cancellation of JIC Mining at Optimum Coal

THE business rescue practitioners (BRP) appointed to stabilise Optimum Coal Mine and other coal mines under contract to supply Eskom, South Africa’s power utility company, suspended the services of JIC Mining Services, a contractor at Optimum Coal.

Some 480 employees would be affected by the move, according to a statement by the National Union of Mineworkers (NUM) which added that the pracitioners had not made good on their mandate to bring financial stability to the mine. Most of the employees at JIC are members of the NUM, the union said.

JIC Mining Services is a subsidiary ofnTegeta Resources & Exploration, a company owned by the prominent Gupta family, some of whom are now wanted by the South African Police Services as it investigates allegations of fraud and corruption. There is a proposal on the table by Burgh Group, an unlisted coal miner and exporter, to operate Optimum Coal – which has been accepted by the BRP but requires a level of buy-in from Eskom which is the purchaser of the coal.

“When Optimum Coal Mine was placed under business rescue … the NUM viewed that as a move that will bring financial stability … however, it seems like the Business Rescue Practitioners see that as a business opportunity as there is no substantial progress,” said Tshilidizi Mathavha, NUM Highveld Regional Secretary.