The curator of the former Gupta-owned Optimum Coal Mine has highlighted his unease over mining taking place on the property, which is proving highly profitable for contractors while Optimum receives a relative pittance in royalties, reports Fin24.

In an interim report submitted to the Gauteng High Court (Pretoria), the court-appointed curator, Peter van den Steen of Metis Strategic Advisors, flagged the mining of mini-pits which are on the Optimum property.

The business rescue practitioners had entered into agreements with contractors as far back as 2018 to generate revenue to keep the mine on care and maintenance at a cost of R10m a month.

Most of the agreements were signed before a massive surge in export coal prices.

The curator was appointed as part of a court judgment that was handed down in March and which granted the NDPP a preservation order over the Optimum Coal Mine and Coal Terminal.

The mine was owned by the Gupta family and used, the NDPP said, as a money-laundering machine to fund the family's state capture efforts.

In 2018, when banks cut off Gupta-linked companies, the mine and terminal were placed into business rescue. The NDPP has recently applied for a court order to have the Optimum assets forfeited to the state.

In his report, the curator said the extension or renewal of these contracts, some of which have already expired, will require his consent and will have to ‘take into account the prevailing price of coal’ and ‘ought to be on commercially reasonable terms’.

The curator's first interim report was filed this month in accordance with the preservation order judgment, which required that he produce a valuation of the assets, as well as his intention for the property.

The NDPP believes the shares in the Optimum businesses to be worth R3.4bn.

Full Fin24 report