News

Optimum in wealthy hands

The Competition Tribunal has given the go ahead for the Tegeta takeover of Optimum and Koornfontein mines, and there's a definite possibility that the mines will become more financially viable than they were, with massive capital injections on the cards.

The transaction has not been completed, and Tegeta was reluctant to answer Middelburg Observer questions in regards to future plans.

Tegeta however surprised the paper after answering some of its questions in less than 24-hours of receipt.

According to the company, Tegeta will immediately move to review the social and labour plan submitted to the Mineral Resources Department by the current owners.

On the question of whether existing mine contractors will be re-contracted, Tegeta said: “We are committed to the future sustainability of the business and by acquiring Optimum we have prevented a liquidation that would have resulted in the loss of more than 3,000 jobs.

It is too early to make an announcement on our strategy for the business. However Oakbay Investments has prided itself on consistent job creation for South Africans and reinvested profits in South Africa.

We are saving and creating jobs in mining when others are cutting them. In fact, since 2015, the top three mining companies in South Africa have made more than 10,000 people redundant.

In contrast, we have created 3,500 jobs in mining”.

Tegeta have spent six months working on the Optimum project, with talks breaking down several times.

Tegeta says it would not have persevered if it did not believe that is was a good acquisition in the long term.

The company committed to supply the Observer with more detailed answers on future operations, once the deal has gone through.

Read previous story here:

DA cries corruption over optimum

 

Gerhard Rheeder

I have been a journalist for two decades, with numerous awards to my credit, both in photography and writing. A brief stint as researcher in the opposition offices of the Mpumalanga Provincial Legislature, honed my skills as specialist local government reporter, covering crime and courts.
Check Also
Close
 
Back to top button