Billionaire comes to the rescue of two Gupta mines
Entrepreneur Quinton van der Burgh says he plans to have two of the crippled Gupta mines financially stable in two months and increase coal production within six months.
Van der Burgh has won a temporary contract to keep Optimum and Koornfontein mines afloat. Through his business Burgh Group Holdings‚ the businessman and philanthropist will act as a technical advisor to the mines.
Various Gupta businesses are struggling as banks shun them following allegations the family used ties to former president Jacob Zuma to win contracts. Optimum Coal and six other companies were placed in administration in February and were unable to operate because India’s Bank of Baroda‚ the last lender to have open accounts linked to the Guptas‚ was preparing to leave the country.
Other parties offered financing‚ but Burgh “came without conditions”‚ Louis Klopper‚ a bankruptcy-proceedings manager at Coronado Consulting Group‚ said on Wednesday. Burgh is “an ideal partner” to provide technical expertise and banking facilities‚ he said‚ without disclosing financial terms.
Van der Burgh told Times Select his company had been able to step in at just the right time‚ after seeing the downfall of the two mines.
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