Arnot OpCo signed a 10year (2m tonnes of coal a year) Coal Supply Agreement with Eskom for the supply of coal for the Arnot Power Station.
In terms of the agreement, Arnot OpCo will supply the full coal requirement for the life of Arnot Power Station.
Who is Arnot OpCo?
In terms of the agreement, Arnot OpCo will supply the full coal requirement for the life of Arnot Power Station.
Who is Arnot OpCo?
Arnot OpCo a mining company that is half-owned by 1 038 former Exxaro Resources employees who were retrenched in 2015 from the Arnot Mine in Middelburg.
The other half is owned by Wescoal which is listed on the JSE.
The other half is owned by Wescoal which is listed on the JSE.
How did the employees come about owning the 50%?
Minister of Mineral Resources granted consent in terms of s11 of the MPRDA for the cession of the mining right for Exxaro's Arnot coal mine to a Consortium which will benefit its former employees who had been retrenched.
Minister of Mineral Resources granted consent in terms of s11 of the MPRDA for the cession of the mining right for Exxaro's Arnot coal mine to a Consortium which will benefit its former employees who had been retrenched.
Why were the employees retrenched?
They were retrenched following the expiry of the coal supply agreement with Eskom in 2015, which ultimately lead to the closure of the mine.
What do they say about blessings?
They were retrenched following the expiry of the coal supply agreement with Eskom in 2015, which ultimately lead to the closure of the mine.
What do they say about blessings?
This deal enabled the consortium to restart the mine and, upon conclusion of a new coal supply agreement with Eskom (the one mentioned at the start of this thread) to supply coal to Eskom for its Arnot power station.
The location of the mine is proper. 👌🏿
The location of the mine is proper. 👌🏿
Exxaro then transferred the Arnot mining right and its movable and immovable assets on the mining right area to Arnot OpCo at no cost.
The former employees at Arnot mine then participated in the ownership structure of Arnot OpCo through a trust, Arnot Affected Employees Trust.
The former employees at Arnot mine then participated in the ownership structure of Arnot OpCo through a trust, Arnot Affected Employees Trust.
IR then partnered with Wescoal Holdings which is a coal miner, trader and supplier to the domestic and export market, to restart the Arnot mine and unlock its value.
IR is 100% owned by the former mineworkers while Wescoal has a 50% interest in Arnot HoldCo.
IR is 100% owned by the former mineworkers while Wescoal has a 50% interest in Arnot HoldCo.
What makes this a great deal for both Eskom and Arnot OpCo?
Remember the location? Arnot Mine is adjacent to the Arnot Power Station and coal will be delivered to the power station through a conveyer belt, resulting in a cost competitive advantage with minimum carbon tax impact.
Remember the location? Arnot Mine is adjacent to the Arnot Power Station and coal will be delivered to the power station through a conveyer belt, resulting in a cost competitive advantage with minimum carbon tax impact.
From being fired in 2015 when Exxaro decommissioned due to a previous coal supply agreement with Eskom not been renewed, to owning a mine, to signing a 10 year Coal Supply Agreement with Eskom for the supply of 2 million tonnes of coal a year is a big win for the employees. 🤞🏿
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