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DSA Investments JV to Bid for Coal Mines in South African

Coal News - Published on Thu, 19 Sep 2019

Image Source: gulfbusiness.com
Dubai’s DSA Investments has teamed up with two South African companies to bid for coal assets that Glencore was pressured into selling to a company controlled by the politically connected Gupta family in 2015. Orchid Mining, a unit of DSA, owns 49 percent of the venture making the bid and the balance is held by the Smada Group and Nehawu Investment Holdings, which invests funds on behalf of the National Education, Health and Allied Workers’ Union.

Tegeta Exploration & Resources, which owns the coal mines and was controlled by the Gupta family and a son of former South African President Jacob Zuma, became embroiled in controversy because of corruption allegations around its supply contracts with power utility Eskom Holdings. The company is now under administration. Its assets include the Optimum coal mine, the Koornfontein colliery and a share in Richards Bay Coal Terminal, which allows it to export the fuel. Port access for coal producers in South Africa is a prized asset.

The venture will bid for all the assets, said Adams, adding that Smada derives its name by spelling his surname backward. By being 51 percent owned by black South African companies it complies with Eskom’s procurement guidelines as it tries to boost black participation in the economy a quarter of a century after the end of apartheid. Initially the venture hadn’t included Smada.

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Posted By : Rabi Wangkhem on Thu, 19 Sep 2019
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