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Wescoal optimistic its 2016 success will extend into this year

27th January 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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With a successful 2016 under its belt, JSE-listed Wescoal is optimistic about 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) coal 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 the 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

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Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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