The Wescoal Group complies with the BEE parameters as set out in the Mining Charter.
Wescoal’s black ownership now exceeds 51% after a BEE special purpose vehicle (SPV), whose shareholders comprise a consortium of existing Wescoal shareholders – Robinson Ramaite, Simeka Capital and Eric Nthuthuko Mzimela – subscribed for nearly 125-million Wescoal shares for R211.41-million.
The SPV consortium signed a five-year agreement which restricts its ability to dispose of the shares. This transaction is a transformational milestone for Wescoal injecting R180-million worth of equity into the company primarily for growth and expansion initiatives. It also de-risked the five-year Eskom coal supply contract and made it bankable.
Some R1.9m has been allotted to enterprise development and Raizcorp appointed to oversee the Group’s initiatives for the mining and trading subsidiaries. We intend to translate entrepreneurial potential into sustainable businesses for the Wescoal supply chain or be positioned to operate independently within the areas we are located. The company has also made an investment of approximately R5,6 Million in local economic development (LED).
In the period under review the company undertook Corporate Social Investment initiatives ranging from community upliftment projects in the mining space to renovation of primary school facilities within the Middelburg area. The CSI programme, Enterprise Development and Employment Equity is fully outlined in the Social and Ethics report.