. To generate electricity with coal
The National Council on Privatisation (NCP) has granted approval to Orbit Exploration and Natural Products Limited (OENPL), to take over the mineral titles of Ogboyega North and South Coal Blocks, Mines number 769 & 772 ML from Western Metal Products Company (WEMPCO).
The company is set to generate electricity with coal from the mines, according to a statement by the Bureau of Public Enterprises (BPE).
This was one of the major highlights of the Meeting of the Council, presided over by the Vice President Yemi Osinbajo, who is also the Chairman, NCP, which was held recently at the Presidential Villa, Abuja.
In granting the approval, the Council noted that the BPE’s due diligence indicated that OENPL can provide the financing and technical expertise needed to successfully operate the mines.
It further noted that WEMPCO had requested for BPE’s approval to transfer the mineral titles of the two coal blocks to OENPL in line with the provisions of the Asset Share Purchase Agreement (ASPA).
…the BPE’s due diligence indicated that OENPL can provide the financing and technical expertise needed to successfully operate the mines.
Also, OENPL has proposed to spend N112 billion to procure equipment for operationalizing the two coal blocks and power generation.
Recall that Ogboyega North and South Coal Blocks were sold to WEMPCO in 2007, at the fee of about $7.4 million, and $7.7 million respectively. However, 15 years after the transaction, the two Coal Blocks have not been fully operationalised.
Consequently, WEMPCO requested the Bureau’s approval to transfer the Mineral Title of Ogboyega Coal Block to OENPL.
As a result, BPE had to review the provisions of the ASPA executed with WEMPCO, which confirmed that the request conforms with the provisions therein, particularly Article 18.6 that allows such transfer of shares, subject to the consent of NCP/BPE.
Having studied the business plan and financial position of OENPL, the Bureau of Public Enterprises (BPE) recommended that it was capable of operating the mines.