Go Back Email this Link to a friend

WESCOAL HOLDINGS LIMITED - Wescoal reports first coal contracted to Eskom from its flagship Elandspruit project

Release Date: 10/09/2015 09:00:00      Code(s): WSL     
(Incorporated in the Republic of South Africa)
Registration number 2005/006913/06)
JSE Share code: WSL ISIN: ZAE000069639
(?Wescoal? or ?the Company?)


Further to SENS announcements released on 9th July and 29th
July 2015, Wescoal the mining and trading group wishes to
update shareholders regarding developments at its flagship
Elandspruit project in Mpumalanga.

The Company is pleased to report that it has signed a short
term contract [STC] with Eskom to supply a total of 221 000
tons of coal from its Elandspruit operations which comprise of
the Elandspruit colliery and nearby Wescoal Processing Plant.
This follows on STCs signed in the last week of May 2015 for
the supply of 190 000 tons of coal from its Khanyisa and
Intibane mines.

The conclusion of an Eskom contract for Elandspruit heralds an
upturn in mining activity and revenues going forward after
delays in finalising Eskom coal supply agreements.
Management?s strategy of operating the Wescoal Processing
Plant on a marginal profit basis, with feed sourced from other
producers has meant that the plant is primed and ready to
operate at its current capacity of more than 150 000 feed tons
per month. Elandspruit?s run of mine will be trucked 20km to
the processing plant where it will be beneficiated to meet
Eskom?s quality requirements.

Acting CEO Waheed Sulaiman said; ?Getting to this point is a
major milestone and has been achieved through hard work and
perseverance. Longer than expected delays earlier this year,
resulted in us having to enter into sub-optimal coal sale
arrangements with other customers while we engaged with Eskom.
Signing the long-term Eskom contract for Elandspruit is now at
the top of our priority list, after which we will focus on
Intibane and Khanyisa.?

Sulaiman concluded; ?Wescoal has traditionally delivered
stronger results in the first half of its financial year, but
this year will see a reversal of that trend as we close out
our current Eskom negotiations and continue to grow the

The above information has not been reported on or reviewed by
the Company?s auditors.

10 September 2015

Nedbank CIB

Investor Relations Advisor
Jacques de Bie
Tel: 082 691 5384

Date: 10/09/2015 09:00:00 Supplied by www.sharenet.co.za                     
Produced by the JSE SENS Department                             . The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Email this JSE Sens Item to a Friend.

Send e-mail to
© 2018 SHARENET (PTY) Ltd, Cape Town, South Africa
Home     Terms & conditions    Privacy Policy
    Security Notice    Contact Details
Market Statistics are calculated by Sharenet and are therefore not the official JSE Market Statistics. The calculation/derivation may include underlying JSE data.