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Wescoal receives ‘force majeure’ notification from Eskom
WESCOAL HOLDINGS LIMITED
Incorporated in the Republic of South Africa
(Registration number 2005/006913/06)
Share code: WSL
ISIN: ZAE000069639
(“Wescoal” or the “Company”)
Wescoal receives ‘force majeure’ notification from Eskom
Wescoal shareholders are hereby advised that on 17 April 2020, Eskom Holdings SOC Limited (‘Eskom’)
served Wescoal with letters calling force majeure on the coal supply agreements in place for the
supply of coal to their power stations.
The letters Wescoal received indicated that this notification is applicable for the period starting on 16
April 2020 until one month after national lockdown has been completely lifted. The effect of these
indications are that Eskom will not necessarily be taking the full contractually agreed tons of coal for
the aforesaid period from Wescoal’s operations.
Further, the indications and extent of the reduced coal offtake by Eskom are as yet unquantifiable,
therefore the potential impact on Wescoal cannot be quantified until discussions with Eskom have
been concluded.
The Company will update the market appropriately, if there is any material impact on its coal supply
agreements with Eskom.
21 April 2020
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
IR Advisor
Singular IR
Date: 21-04-2020 02:50:00
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