Eskom advances tied to Tegeta coal mine purchase, South African inquiry finds
Short record: the main facts, with sources. A full case file has not been prepared.
A South African commission found that Eskom advances were tied to the sale of the Optimum coal mine to Tegeta, a company linked to a business family. At stake are public funds, which the case file says were paid by Eskom and borne by taxpayers.
- Tegeta — Bought the Optimum coal mine from Glencore after the minister's pressure, and received Eskom advance payments amaBhungane / Daily Maverick
- Owners of Tegeta — Gained from the purchase; their family later left South Africa, per the case file
- Eskom — Paid the advances of 1.68 billion rand and 659 million rand, per the case file amaBhungane / Daily Maverick
- Taxpayers, who pay Eskom's bill — Carry the cost of the advances, per the case file
What happened
In December 2015 the mines minister, Mosebenzi Zwane, travelled to Zurich and pressed Glencore to sell the Optimum coal mine to Tegeta, which the Zondo Commission recorded as arm-twisting.
Banks refused credit, and amaBhungane reported in October 2016 that most of one Eskom advance, R587m, was approved within six hours.
The Zondo Commission described the purchase of the mine, backed by the Eskom advance, as sham.
The commission found the advance related to financial support for Tegeta rather than to coal supply, and recommended criminal charges against former Eskom executives.
In court and with insurers
Lawsuits and rulings
Insurers
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Record
- Insufficient Reported but not verified: a 2026 report that the Optimum mine came back from a rescue process; the sources reviewed do not confirm it.
- None on record The sources do not say whether criminal charges followed the commission's recommendation.
- None on record The sources do not say whether the advances were repaid.
Did the harm stop?
Not stated in the sources reviewed.
Who paid?
Not stated in the sources reviewed.
Sources
Press and investigations
- R587m in six hours: how Eskom paid for a coal mineamaBhungane / Daily Maverick · 2016-10-20
- Zondo recommends criminal charges against former Eskom executivesMail & Guardian · 2022-04-29
Connected cases
- Fikile Ntshangase murder and Somkhele coal mine (South Africa) South Africa · 2020 Related matter
- Glencore settles bribery and market manipulation charges in US, UK, Brazil Multiple countries · 2007–2022
- Glencore (Company) — here: Seller of the Optimum coal mine; there: Admitted bribery and market manipulation charges (2022)
- Pilbara Minerals' profit fell sharply as lithium prices slumped; Li-Cycle went bankrupt Australia · 2024–2025
- Glencore (Company) — here: Seller of the Optimum coal mine; there: acquirer of Li-Cycle assets
- The Metals Company deep-sea nodule mining in the Clarion-Clipperton Zone (NOAA permit route) International waters (Pacific Ocean) · 2011
- Glencore (Company) — here: Seller of the Optimum coal mine; there: Holder of a right to half of NORI-area nickel and copper