Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – With a successful 2016 under its belt, JSE-listed Wescoal is optimistic of the year ahead as it leverages a series of milestones and initiatives to support its aspirations for eight-million tons a year of run-of-mine (RoM) and its revenue diversification strategy.
During the past year, Wescoal concluded contracts with State-owned power utility Eskom and export coal sale contracts and secured an equity injection through a black economic-empowerment (BEE) deal, which bodes well for further inorganic, acquisitive growth, as well as unlocking organic growth options through the expansion of Elandspruit colliery and operationalising the Khanyisa colliery.
Wescoal’s five-year coal supply agreement with Eskom, which started on November 1, will see the delivery of some 7.8-million tons of coal beneficiated at Wescoal’s processing plant, which equates to 165 000 t/m RoM coal from Elandspruit.
The group also concluded export contracts for more than one-million tons a year for the next three years, significantly derisking and diversifying the miner’s future revenue streams.
Further, in December, a five-year 51% direct BEE deal was successfully concluded and implemented, with the R178-million capital injection earmarked for use in acquisitions.