Today's Labour News

newsThis news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

newsNews24 reports that a coal mine owned by the Gupta family landed a R150m bank loan by putting forward the mine's environmental rehabilitation fund as security for the loan.  

This was a move that was not only unlawful, but also jeopardised the mine’s ability to restore any environmental damage in and around the colliery.  A document details how the Gupta-owned Koornfontein coal mine in 2016 secured a R150m loan from the Bank of Baroda by means of offering R170m held in the mine's rehabilitation trust as surety for the loan.  Seeing as the bank would have been able to lay claim to the funds in the rehabilitation fund in the event that the Guptas were unable to repay the loan, the transaction posed the risk of leaving the rehabilitation fund completely depleted by the time Koornfontein would have needed to restore the environment at the end of the colliery's lifecycle.  According to experts, the loan constituted a transgression of the environmental laws and regulations.

  • Read this report by Louis Myburgh in full at News24


Get other news reports at the SA Labour News home page