Glencore‘s struggling South African unit, Optimum Coal, which is currently embroiled in a dispute over the price of coal with power utility Eskom could be sold off, a firm appointed to rescue the troubled business said on Tuesday.
“There was buying interest that is not a factual inaccuracy as all options were being explored,” a spokeswoman for the business rescue practitioners who declined to be named said. “All the options were on the table but at the moment, they are looking to spearhead one specific option and hopefully that will be made apparent soon,” she said, without elaborating.
Optimum and Eskom are at odds over the price of coal with the utility refusing to pay more than 150 per tonne of the fuel. Optimum says this rate is less than the cost of production.
The administrators said Glencore will continue to fund its troubled mine and supply Eskom with coal until the impasse with Eskom has been resolved.