Former Gupta mine makes moves

LIBERTY Coal made history on Monday, 8 April, when its first train arrived at Optimum Coal Mine (OCM) in Mpumalanga to commence the delivery of coal to Richards Bay Coal Terminal (RBCT).

Optimum was owned by former president Jacob Zuma's friends, the Guptas.

Since January 2023, both Liberty Coal and the Optimum Coal Mine have faced challenges in railing and exporting coal from the Optimum Mine.

The first delivery happened after the Liberty Coal's recent settlement of all legal disputes with the National Prosecuting Authority (NPA), the acquisition of OCMs business, assets and compromised liabilities.

In March, the company signed an agreement with the mine's business rescue practitioners and RBCT which saw RBCT lifting its suspension on Optimum Coal's export allocations, allowing Liberty Coal to begin coal exports.

Liberty Coal's chief financial officer Ulrich Bester stated: "This is a proud moment for Liberty Coal, and all of its stakeholders including the employees, service providers, local communities and NUM, who joined Liberty Coal to celebrate the arrival, loading and departure of Liberty Coals' first train to RBCT. The atmosphere at the rail siding was emotional and electric."

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He said now that arrangements between Liberty Coal and Transnet have been finalised, the first trains have begun transporting coal to RBCT.

"Liberty Coal wishes to extend its thanks to all parties involved in what has been a protracted battle to acquire Optimum Coal Mine and last night was a significant milestone in the rehabilitation of the Optimum mine to restore it to its former glory," said Bester.

Liberty Coal took full operational control of the Optimum Coal Mine from 1 February 2024, together with beneficial occupation and possession of OCM's assets.

Additionally, Liberty has taken on the compromised claims of OCM's and Optimum Coal Terminal's respective creditors.

OCM has been in business rescue for six years.

The National Union of Mineworkers said in February that more than 500 jobs were to be saved after the NPA and the Liberty Coal negotiated a R462 million forfeiture settlement over mining rights.

The relaunch was put on hold last month pending resolution of a dispute over its export entitlement through the Richards Bay Coal Terminal (RBCT).

"Liberty Coal extends special thanks to Transnet for working quickly, efficiently and diligently through their internal regulatory processes to ensure Liberty Coal was able to secure its position on the weekly rail schedule, along with other RBCT shareholders who jointly utilise Transnet's rail capacity on the coal corridor to RBCT.

"We support Transnet's recent efforts to improve the efficiency and capacity of the coal corridor to the benefit of all of RBCTs shareholders and the wider South African economy and fiscus," said Bester.