Miningmx reports that African Exploration & Mining Finance Company (AEMFC), a company owned by the SA government, said on Tuesday that it had been awarded an option to bid for Optimum Coal Mines.  

This was after business rescue practitioners (BRPs) had accepted the firm’s post-commencement funding (PCF) of some R1bn.  This means that AEMFC, which is housed in the government’s Central Energy Fund (CEF), will proceed to a management contract negotiation with the BRPs for Optimum Coal Mines.  But, the final ownership of Optimum will be subject to a competitive bidding process.  AEMFC said it was joined in its PCF offer by Lurco Group, a well-known and respected coal mining company.  AEMFC indicated that a priority for the PCF would be worker salaries, which apparently have been unpaid since October, as well as payment of suppliers and creditors.  It also suggested that ownership of the mines held in Optimum Coal Mines would be shared among workers and communities surrounding the mines.  Sizwe Madondo, CEO of AEMFC, said he was “delighted” to have been awarded the PCF deal.  “Through our consortium team of reputable and experienced sector experts, we are confident we can deliver the sustainable Optimum Coal South Africa both deserves and needs,” he stated.

• Read the original of this report by David McKay in full at Miningmx

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