Billionaire bailout: SA businessman plans to rescue 2 crippled Gupta mines

Billionaire bailout: SA businessman plans to rescue 2 crippled Gupta mines

- South African Billionaire Quinton van der Burgh has won temporary contracts to operate 2 Gupta mines

- Van den Bergh wants to save the Optimum and Koornfontein coal mines

- The billionaire says he will have both mines financially stable within 2 months and aims to increase production in 6 months

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Billionaire South African entrepreneur, Quinton van der Bergh has temporarily rescued two crippled Gupta mines. Van der Bergh won a temporary contract to keep Optimum and Kroonfontein coal mines open.

The billionaire says he plans to have both mines financially stable within two months and wants to increase coal production within six months.

READ ALSO: EFF in Tshwane tell Msimanga they will continue to occupy vacant land

Through his Burgh Group Holdings Company, Van der Bergh will take personal control of both mines and act as the technical advisor to both of the mines.

Briefly.co.za discovered that various Gupta-owned companies in South Africa are struggling because no banks want to do business with the controversial family or their holding company Oakbay Investments.

South African banks have refused to do business with Oakbay or any of its affiliates since accusations that the Gupta family used its ties with former president Jacob Zuma surfaced.

Seven Gupta-owned companies were placed under administration in February and have been unable to operate because Bank of Baroda, the last financial institution to have accounts with these companies, was preparing to exit South Africa.

Other entities had made offers to run the two mines but these came with crippling conditions, van der Bergh was reportedly the only bidder who had no conditions attached to the contract.

Louis Klopper, a bankruptcy-proceedings manager at Coronado Consulting Group said van der Bergh is the ideal partner for the two mines, she said he brought financial stability and technical knowledge.

The financial terms of the agreement have not been made public.

Van der Bergh said his company was able to provide a rescue package at the right time after having watched the downfall of the two mines.

The initial contract between the mines and van der Bergh is for 12 months.

READ ALSO: ANCYL leadership in turmoil after Maine revelation about Gupta links

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Source: Briefly.co.za

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