Liberty Coal is accusing the National Prosecuting Authority (NPA) of colluding with the Richards Bay Coal Terminal to destroy Optimum Mine in Middelburg, Mpumalanga.

The mining company, as the purchaser of the assets and business of Optimum Coal, has been involved with Optimum’s business rescue proceedings.

The company says it remains committed to investing in Optimum to bring the mine back to full production, but warned that the NPA will be responsible for more than 2 000 job losses if it continues with its asset forfeitures.

Liberty Coal says the intention is to acquire the mine as detailed in the business rescue plan adopted by Optimum’s creditors, including Eskom in September 2020, as well as Richards Bay Coal Terminal export allocation nominally held for Optimum’s benefit and use by its sister company Optimum Coal Terminal.

More than two years later, the mine, export terminal and Liberty Coal are still unable to implement the adopted business rescue plan, due to the NPA’s continuing legal action.

The mine lost its terminal licence and is unable to transport coal to export markets.

According to Liberty Coal, the NPA and the management and board of the Richards Bay Coal terminal ‘are pushing a false, prejudiced and defamatory narrative that will result in further unemployment’.

Liberty is currently the mine’s majority coal producer.

The company, in an appeal to President Cyril Ramaphosa, says: “The goal appears to justify stopping Optimum, the Optimum terminal and Liberty Coal from using its terminal port allocation and associated rail allocation from Transnet, to benefit Glencore, Seriti, Thungela and Exxaro.”

According to Liberty, Glencore owns Circa 19%, Seriti 21%, Thungela 23% and Exxaro 12% of the Richards Bay Coal Terminal, and have highly placed representatives on the board.

“Such directors have, in principle, a conflict of interest in voting to support outcomes that materially and directly benefit the shareholders they represent,” Liberty says.

“Despite Optimum’s manifest reliance on utilising its export allocation to sustain itself financially pending the finalisation of current legal proceedings, and despite good financial standing with the Richards Bay Coal Terminal, the board voted to terminate Optimum’s export entitlement solely to prevent Optimum’s contract miners from being able to sell coal via the terminal to export markets.”

The NPA says that a new buyer for the mine will be sought as a matter of urgency.

Mini-pit contractors have created over 2 000 jobs, despite being ‘short-term operators’ basically keeping the mine alive.

The mine sustained millions in damages due to theft and vandalism before Liberty’s arrival, and Liberty says it remains committed to the refurbishment of critical infrastructure.

The NPA has countered that pit miners were behind the systematic looting of the mine’s assets, thereby decreasing the market value of the mine.

Liberty denies the accusation, saying mini-pit contractors are bound by legal arm’s length agreements deliberately structured to limit any market risk to Optimum.

Liberty says if it wasn’t for the mini-pit operators, the mine would have been liquidated.

Business rescue practitioners side with Liberty and are challenging the cancellation of Optimum’s export entitlement, leaving Optimum with mountains of coal, with nowhere to go.