Richards Bay Coal Terminal (RBCT) and Liberty Coal have kissed and made up after striking a coal export agreement for the former Gupta-owned Optimum Coal Mine (OCM) to begin to export its coal through the lucrative terminal.
The parties anticipate that as of April, tonnes of coal from OCM’s Mpumalanga operation will begin to be exported through the RBCT, pending the finalisation of the necessary rail arrangements with Transnet.
RBCT said it looked forward to the revitalisation of the OCM and its restoration by Liberty Coal and its shareholders as a significant and sustainable contributor to employment opportunities and economic activity within the greater Steve Tshwete municipal region and to the South African fiscus.
Settlement with the NPA
The deal sees Liberty Coal Terminal officially take over the export allocation of Optimum Coal Terminal (OCT), which is under business rescue together with OCM.
Liberty Coal acquired ownership of OCM following a settlement with the National Prosecuting Authority (NPA), which had argued that the Guptas bought OCM in 2016 through proceeds of crime.
Liberty Coal is a subsidiary of Daniel McGowen’s Templar Capital, which was a R1.3-billion creditor to OCM.
Liberty Coal paid R462-million to the state without admitting liability. The settlement was supposed to pave the way for the mine to exit business rescue.
Both RBCT and Liberty Coal said in a joint statement issued on Monday that “absent anything unforeseen arising, the parties expect the first coal to be railed to the RBCT terminal in early April 2024”.
Business rescue plans
“Liberty Coal and the business rescue practitioners of OCM and OCT will in the meantime continue with the implementation of the OCM and OCT business rescue plans and the supporting transaction agreements, with a view to ensuring that all necessary registrations relating to the transfer of OCM’s mining assets, including all immovable properties, are, as far as possible, completed on or before January 31 2025.”
Liberty Coal confirmed that it took full operational control of the OCM on February 1 2024, together with beneficial occupation and possession of the OCM’s assets, and assumed the compromised claims of the OCM’s and OCT’s respective creditors.
OCM and OCT stated that once their respective business rescue practitioners were satisfied that substantial implementation had taken place, they would be formally discharged from their business rescue proceedings.
