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Eskom responds in detail to Gupta coal contract allegations

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Johannesburg - Eskom on Sunday denied having "blindsided" Exxaro in granting a contract to supply the Arnot power station to Tegeta Exploration and Resources - owned by the Gupta family and President Jacob Zuma's son Duduzane.

This was after City Press reported on Sunday that this Eskom contract worth R564m lies at the heart of a "spectacular" turnaround of Optimum Coal. Optimum Coal is situated in Mpumalanga and is currently in business rescue. It was sold by Glencore to Tegeta in April for R2.15bn. This was after the business rescue practitioners of Optimum projected in March that the mine would likely lose R100m a month.

In April Eskom awarded the contract to Tegeta to supply the Arnot power station with 1.2 million tonnes of coal over six months. According to City Press, Tegeta received this contract after a 9-month delay by Eskom in awarding a permanent supply contract to replace an Exxaro contract that had expired at the end of 2015.

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