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).
OENPL is also expected to as part of the deal, generate electricity with Coal from Mines it is willing to invest N112 billion to procure equipment for operationalizing.
The National Council on Privatisation, presided over by the Vice President and Chairman of the Council, Professor Yemi Osinbajo (SAN) granted the approval during it’s maiden meeting at the Presidential Villa, Aso Rock, Abuja.
The Council also noted that the due diligence carried out on the enterprise by the Bureau indicated that OENPL can provide the financing and technical expertise needed to successfully operate the mines.
The Council also said the request for the transfer of the mineral titles emanated from WEMPCO in line with the provisions of the Asset Share Purchase Agreement (ASPA).
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.
Recall 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.