While Optimum coal mine, which supplies Eskom’s Hendrina power station is undergoing business rescue, the power utility says it will source coal from other suppliers.

In a statement released on Thursday Eskom confirmed the status of the coal mine. “Optimum coal mine that supplies Hendrina Power Station in Mpumalanga informed Eskom that they have commenced with business rescue proceedings on Monday, 19 February,” the utility said.

“Eskom has fully complied with its contractual obligations to Optimum Colliery,” it added.

Failed to meet contractual obligations

The power utility said that the Gupta owned mine in January failed to meet its contractual deliveries to Hendrina Power Station in Mpumalanga.

“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 on Wednesday. In mitigation, Eskom has diverted coal from other mines to supply Hendrina Power Station,” said the power utility.

Eskom will continue to focus on the energy availability of the rest of the fleet to ensure reliability of supply, it said