………approves takeover of Ogboyega mining sites
The federal government has confirmed its approval to takeover the Ogboyega North and South Coal Blocks, Mines number 769 and 772 ML sites from Western Metal Products Company (WEMPCO), in order to utilize coal from the mines for electricity generation.
A statement issued within the week in Abuja by the Head of Communications of Bureau of Public Enterprises (BPE), Ibeh Chidi, stated that the approval for takeover was given to Orbit Exploration and Natural Products Limited (OENPL), by the National Council on Privatization (NCP).
“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 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).
“Also, OENPL has proposed to spend N112 billion to procure equipment for operationalising the two coal blocks and power generation,” parts of the statement read.
Recall that Ogboyega North and South Coal Blocks were sold to WEMPCO in 2007 at the sum of $7.378 million and $7.678 million respectively.
But after 15 years, the two coal blocks have not been fully operationalized. As a result, WEMPCO requested BPE for approval to transfer the mineral title of OENPL.
Following the request, BPE reviewed the provisions of the Asset Share Purchase Agreement it signed with WEMPCO, upon which, it was confirmed that the request conformed with the provisions therein.
He stated that the request also conforms particularly to Article 18.6 of ASPA which allows such transfer of shares, subject to the consent of NCP and BPE.
According to the statement, BPE, having studied the business plan and financial position of OENPL, recommended that it was capable of operating the mines and was subsequently granted approval.
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