Coal mining and trading company Wescoal Mining remains focused on its long term priorities of strategy, growth, sustainability and governance despite severe market pressure expected for the foreseeable future in both international and domestic coal markets.
Wescoal, whose overall growth strategy is underpinned by revenues from its Elandspruit operation and cash flow generation capacity from its trading business, believes that it is increasingly well positioned to take advantage of some local opportunities that the current market conditions will inevitably create.
In the long-term, Wescoal said that it will continue to build its strategy around supplying coal to Eskom, as 80% of the company’s reserves meet Eskom requirements.
Wescoal’s mining division is on track to produce approximately 335 000 tpm of run-of-mine ore during the final quarter of the current financial year, while Elandspruit, which produced first coal in July, continues to sell all of its coal to Eskom.
In a statement to its shareholders on Friday Wescoal said that given the company’s rapid change and the results of our independent board evaluation process, the board agreed that it needs to be strengthened and to be more inclusive.
In response to be more inclusive, including more independent directors, mining specialists and increased black female representation, Wescoal’s board is now reviewing the Wescoal MOI to align it with the requirements of the company and will soon convene an extraordinary shareholders meeting to consider the proposed amendments to the MOI.
Further, the early retirement of Wescoal’s former CEO in March, required the positioning of Waheed Sulaiman as CEO in an acting capacity. Sulaiman has subsequently been appointed as executive director.
More recently, the resignation of Morne du Plessis as CFO, determined that Izak van der Walt be positioned as CFO in an acting capacity. Van der Walt has subsequently been appointed as executive director of finance.