South African state-owned power utility, Eskom, released a statement on Thursday noting that Optimum Coal Mine is underway with business rescue proceedings.
Optimum coalmine, which supplies Hendrina Power Station in Mpumalanga, informed Eskom that they have commenced with business rescue proceedings as of Monday 19 February.
Eskom has fully complied with its contractual obligations to the Optimum Colliery.
Optimum Coal Mine
The parastatal highlighted that in January 2018, Optimum Coal Mine failed to meet its contractual deliveries to Hendrina Power Station.
This has led to Eskom imposing a failure to supply penalty. The penalty amount exceeded the invoice amount from Optimum Coal Mine.
Coal has not been delivered to Eskom since workers at the mine downed their tools yesterday, 22 February 2018. Read more...
In mitigation, Eskom has diverted coal from other mines to supply Hendrina Power Station.
Eskom will continue to focus on the energy availability of the rest of the fleet to ensure reliability of supply.