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Orbit takes over Ogboyega coal mines, to invest N112 billion

By Joseph Chibueze, Abuja
09 February 2022   |   4:04 am
The National Council on Privatisation (NCP), has approved the takeover of Ogboyega North and South Coal Blocks by Orbit Exploration and Natural Products Limited (OENPL).

The National Council on Privatisation (NCP), has approved the takeover of Ogboyega North and South Coal Blocks by Orbit Exploration and Natural Products Limited (OENPL).

The blocks with mining lease 769 and 772 originally belonged to Western Metal Products Company (WEMPCO).

The new owner promised to generate electricity from the mines.

This was disclosed at a recent meeting of the Council, presided over by the Vice President and Chairman of NCP, Prof. Yemi Osinbajo.

In granting the approval, the Council noted that the Bureau of Public Enterprises (BPE) due diligence on the enterprise indicated that OENPL could provide the financing and technical expertise needed to successfully operate the mines.

It further noted that WEMPCO had requested the BPE’s approval to transfer the titles 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 operating equipment for the two coal blocks and to generate power.

It would be recalled that coal blocks were sold to WEMPCO in 2007 at the fee of $7,378,150 and $7,678,250 respectively. About 15 years after the transaction, the blocks have not been fully operationalised.

Consequently, WEMPCO requested the BPE’s approval to transfer the assets to OENPL.

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