Optimum Coal Mine
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Optimum Coal Mine is a mothballed coal mine in Pullens Hope, Nkangala, Mpumalanga, South Africa.
Location
Table 1: Project-level location details
| Mine Name | Location | Coordinates (WGS 84) |
|---|---|---|
| Optimum Coal Mine | Pullens Hope, Nkangala, Mpumalanga, South Africa | -26.0048466, 29.6114906 (exact) |
The map below shows the exact location of the coal mine:
Project Details
Table 2: Project status
| Status | Status Detail | Opening Year | Closing Year |
|---|---|---|---|
| Mothballed[1] | Care and Maintenance[1] | – | – |
Table 3: Operation details
| Capacity (Mtpa) | Production (Mtpa) | Year of Production | Mine Type | Mining Method | Mine Size (km2) | Mine Depth (m) | Workforce Size |
|---|---|---|---|---|---|---|---|
| – | 11 | – | Underground & Surface | Mixed | 370 | 150 | 4500 |
Table 4: Coal resources and destination
| Total Reserves (Mt) | Year of Total Reserves Recorded | Total Resources (Mt) | Coalfield | Coal Type | Coal Grade | Primary Consumer/ Destination |
|---|---|---|---|---|---|---|
| 114 | – | – | Witbank | Bituminous | Thermal | Arnot Power Station |
Table 5: Ownership and parent company
| Owner | Parent Company | Headquarters |
|---|---|---|
| Liberty Coal[2] | Liberty Coal [100%] | South Africa |
Note: The above section was automatically generated and is based on data from the Global Coal Mine Tracker April 2024 release and the September supplement.
Background
The Optimum Coal Mine is a surface and underground coal mine caught in the midst of bankruptcy and business rescue proceedings.
The mine has been put on care and maintenance on several occasions (including in 2019 and again in 2020). While its current operational state is unclear, it is believed to be mothballed. Records show that the Optimum mine has been operating since at least 2002, when it was recorded as having an annual capacity of 13.1 million tonnes.[3]
In 2008, BHP Billiton Energy Coal South Africa Ltd sold Optimum mine to Optimum Coal Holdings Ltd.[4] In 2011, Glencore moved to take a controlling stake in Optimum Holdings.[5]
In August 2015, Glencore placed Optimum Coal’s mining operations into bankruptcy proceedings; the operations were sold in December to Tegeta Exploration and Resources (Pty) Ltd. According to a 2015 US Geological Survey (USGS) Minerals Yearbook report, production was likely to shut down in 2016.[6]
In February 2018, Optimum mine went into business rescue after its owners, the India-born Gupta family, fled the country to evade prosecution over their alleged involvement in widespread corruption.[7] Later that year, all mine employees were placed on special leave and their employment contracts were eventually terminated. By May 2019, the mine was placed under care and maintenance.[8] It recommenced mining operations in November 2019 with a reduced number of employees, however, as of July 2020, it was once again put on care and maintenance.[8][9] It is unclear whether or not the mine is currently operational.
The latest proceedings in the business rescue case, reported on July 30, 2020, indicate that a group of Optimum Coal Mine creditors are urging the Pretoria High Court to consider an application to liquidate the coal mine. Liquidation would imply the final death of Optimum as the mine would formally shut down, according to a Business Maverick article.[9] However, the Optimum rescue practitioners oppose the liquidation, because they have indicated that there are at least three potential buyers for the coal mine. These buyers would prevent the mine from shutting down entirely.[9]
In 2022, news outlets reported that allegations have emerged that Optimum Coal Mine has been used as an "'industrial-strength' money-laundering machine"[10][11]
- Operator: Westdawn Investments/JIC Mining Services[9]
- Owners: Optimum Coal Holdings (owned by Tegeta Exploration and Resources (Pty) Ltd.)[9]
- Location: Near Pullens Hope, Municipality of Steve Tshwete, District of Nkangala, in Mpumalanga Province.
- GPS Coordinates: -26.0048466, 29.6114906 (exact)
- Status: Mothballed
- Production Capacity: 11 Mtpa[6]
- Total Resource:
- Mineable Reserves: 114 Mt
- Coal Type: Bituminous (Thermal)
- Mine Size:
- Mine Type: Surface and underground
- Start Year:
- Source of Financing:
Articles and Resources
Additional data
To access additional data, including an interactive map of world coal mines, a downloadable dataset, and summary data, please visit the Global Coal Mine Tracker on the Global Energy Monitor website.
References
- ↑ 1.0 1.1 https://web.archive.org/web/20240312010259/https://www.argusmedia.com/en/news-and-insights/latest-market-news/2533665-liberty-coal-agrees-to-optimum-forfeiture-deal. Archived from the original on 12 March 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ https://web.archive.org/web/20240312011402/https://num.org.za/News-Reports-Speeches/ArticleID/1296/NUM-welcomes-the-settlement-agreement-reached-over-Optimum-Coal-Mine. Archived from the original on 12 March 2024.
{{cite web}}: Missing or empty|title=(help) - ↑ George J. Coakley, "THE MINERAL INDUSTRY OF SOUTH AFRICA," USGS, 2002.
- ↑ "2009 Minerals Yearbook: South Africa," USGS, 2009.
- ↑ "Glencore moves to buy South Africa's Optimum Coal," Reuters, 1 Sept. 2011.
- ↑ 6.0 6.1 "2015 Minerals Yearbook: South Africa," USGS, 2015.
- ↑ "Optimum coal mine rescue plan envisages R2.4bn sale," Argus Media, 24 April 2018.
- ↑ 8.0 8.1 Latest Developments at the Optimum Coal Mine, Department of Mineral Resources & Energy, 23 June 2020.
- ↑ 9.0 9.1 9.2 9.3 9.4 Ray Mahlaka, "Creditors throw their weight behind the liquidation of Gupta-linked Optimum Coal Mine," Business Maverick, 30 July 2020.
- ↑ Lisa Steyn, NPA: Guptas used Optimum Coal Mine as 'industrial-strength' money-laundering machine, News 24, 9 March 2022.
- ↑ Ethan van Diemen, "Tegeta acquired Optimum Coal Mine ‘through succession of criminal acts’, NPA argues in forfeiture application", Daily Maverick, 3 July 2022.
