JOHANNESBURG – Dubai’s DSA Investments has teamed up with two South African companies to bid for coal assets that Glencore was pressured into selling to a company controlled by the Gupta family in 2015.
Orchid Mining, a unit of DSA, owns 49 percent of the venture making the bid and the balance is held by the Smada Group and Nehawu Investment Holdings, which invests funds on behalf of the National Education, Health and Allied Workers’ Union.
“I see the opportunity in the coal industry,” said Yusuf Adams, the founder of Johannesburg-based Smada, which has 4 000 employees and mainly operates in the property, security and information technology industries. “Partnering with DSA is an opportunity for Smada.”
Tegeta Exploration & Resources, which owns the coal mines, became embroiled in controversy because of corruption allegations around its supply contracts with power utility Eskom Holdings. The company is now under administration.