The Federal Government has approved the takeover of Ogboyega North and South Coal Blocks from Western Metal Products Company (WEMPCO).
The Head of Communications, Bureau of Public Enterprise (BPE), Ibeh Chidi, disclosed this in a statement on Tuesday.
He said the approval for takeover of the coal mines was given to Orbit Exploration and Natural Products Limited (OENPL) at the National Council on Privatisation (NCP) meeting presided over by Vice President Yemi Osinbajo in Abuja.
Chidi added that the company was set to generate electricity from the coal mines.
The statement read: “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.
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“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).
“Also, OENPL has proposed to spend N112 billion to procure equipment for operationalising the two coal blocks and power generation.”
Ogboyega North and South Coal Blocks were sold to WEMPCO in 2007 for $7.378 million and $7.678 million respectively.
However, 15 years after the transaction, the two coal blocks have not been fully operationalised.
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