In 2016, the Gupta family's Tegeta Resources bought Optimum Coal Mine from Glencore for R2.15 billion after Eskom extended a questionable R586 million prepayment for coal.
Deputy Chief Justice Raymond Zondo chairs proceedings during the first day of the Commission of Inquiry into State Capture held in Johannesburg, 20 August 2018. Picture: Refilwe Modise
In 2016, the Gupta family’s Tegeta Resources bought Optimum Coal Mine from Glencore for R2.15 billion after Eskom extended a questionable R586 million prepayment for coal. That was exactly the same amount Tegeta was short to complete its purchase the coal mine. The mine had a capacity to produce more than 200,000 tons of coal each month, but its contract with Eskom has allowed it to double the number to 470,000 tons per month.
Eskom executive Daniel Mashigo on Tuesday told the inquiry that the financial evaluation of Tegeta Resources was done “just to tick the box” after a multi-billion rand contract with Eskom had already been signed.
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