February 08, (THEWILL) –Â 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 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, which was held recently in 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 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) and that OENPL has proposed to spend N112 billion to procure equipment for operationalising the two coal blocks and power generation.
It would be recalled that Ogboyega North and South Coal Blocks were sold to WEMPCO in 2007 at the fee of $7,378,150.00 (Seven Million, Three Hundred and Seventy-Eight Thousand, One Hundred and Fifty USD) and $7,678,250 (Seven Million, Six Hundred and Seventy-Eight Thousand, Two Hundred and Fifty USD) respectively. However, fifteen 15 years after the transaction, the two Coal Blocks have not been fully operationalised.
Consequently, WEMPCO requested the Bureau for approval 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.
The Head, Public Communications, BPE, Ibeh Uzoma Chidi said 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.
