Wescoal’s BEE deal not only brings in cash and helps it to secure an Eskom coal supply agreement for its Elandspruit colliery, but it also puts other companies seeking to meet Eskom’s BEE requirements into its sights.In announcing the deal, Wescoal said it would use the R178.1m cash injection from the share issue to acquire "identified listed mining companies".At least three junior coal companies have been trying to sign long-term coal supply agreements with Eskom: Universal Coal, for its New Clydesdale colliery; Resource Generation, for its Boikarabelo mine; and Waterberg Coal Company, for its Waterberg mine.Universal Coal was recently the target of rival takeover offers by Coal of Africa (CoAL) and IchorCoal. CoAL valued the company at US$126.4m or A$0.25/share and IchorCoal valued it at US$80.9m or A$0.16/share. Universal’s shares are currently at A$0.155. CoAL’s bid, which was accepted by Universal’s board, fell through on a technicality. Eric Mzimela, one of Wescoal’s BEE share...
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