Guptas' Optimum mine ‘could lose’ licence after contractors shut water supply

20 February 2018 - 09:55 By Neels Blom
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Optimum coal mine
Optimum coal mine
Image: JEREMY GLYN

The Gupta-owned Optimum coal mine in Mpumalanga could lose its mining licence if its water supply to the town of Hendrina is not restored, a mining law expert says.

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.

Tanker trucks were transporting water from Bethal (about 45km away) to fill plastic tanks supplied by the municipality and others, residents said.

Optimum is required to operate the water desalination plant under its social and labour plan, which is a condition of its mining licence. Tegeta, a company owned by the Gupta holding company Oakbay Investments, bought Optimum in 2016 in a controversial deal involving a prepayment from Eskom for coal supplies.

Read the full story on BusinessLIVE


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