The National Council on Privatisation 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, according to a statement from the Bureau of Public Enterprises is set to generate electricity with Coal from Mines.
This was one of the major highlights of the Meeting of the Council, presided over by the Vice President and Chairman of the NCP, Professor Yemi Osinbajo (SAN) which was held at the Presidential Villa, Abuja.
In granting the approval, the Council noted that BPE’s due diligence on the enterprise indicated that OENPL can provide the financing and technical expertise needed to successfully operate the mines.
It further stated 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).
According to the agreement, OENPL made a proposal to spend N112bn 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 $7,378,150.00 and $7,678,250.
However, fifteen years after the transaction, the two Coal Blocks have not been fully operationalised.
Consequently, WEMPCO was said to have requested approval from the Bureau to transfer the Mineral Title of Ogboyega Coal Block to Orbit Exploration and Natural Products Limited (OENPL).
This necessitated the Bureau to review the provisions of the Assets Sale Purchase Agreement (ASPA) executed with WEMPCO which confirmed that the request conforms with the provisions therein, particularly Article 18.6 which allows such transfer of shares, subject to the consent of NCP/BPE.
Having studied the business plan and financial position of OENPL, the BPE recommended that it was capable to operate the mines.