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imageJOHANNESBURG: Mining group Glencore is disputing South Africa power utility Eskom's 2 billion rand ($157 million) penalty claim for shoddy performance and poor quality coal, the company said on Tuesday.

Glencore, which last week put its Optimum Coal Mine in business rescue because it said Eskom was paying too little for its coal, also said it supplies the utility with a high-quality product.

"Optimum is now in business rescue as a result of the severe financial hardship which it has been suffering as a result of the Eskom contract," Glencore said in a statement.

Copyright Reuters, 2015

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