Acquisitions an option after empowerment deal
escoal’s BEE deal not only brings in cash and helps it to secure an Eskom coal supply agreement for its Elandspruit colliery, but it also puts other companies seeking to meet Eskom’s BEE requirements into its sights.
In announcing the deal, Wescoal said it would use the R178.1m cash injection from the
Wshare issue to acquire “identified listed mining companies”. At least three junior coal companies have been trying to sign long-term coal supply agreements with Eskom: Universal Coal, for its New Clydesdale colliery; Resource Generation, for its Boikarabelo mine; and Waterberg Coal Company, for its Waterberg mine.