21st Mar 2016 12:02
LONDON (Alliance News) - Oracle Coalfields PLC on Monday said the Energy Department of the government of Sindh in Pakistan has extended the 20% internal rate of return arrangement to all coal mining projects based in the Thar Desert for companies which had their financial close before December 31.
Oracle, which has a 1.4 billion tonne lignite resource in the Thar Desert, said the extension is part of a number of fiscal incentives by the Pakistani government to encourage and accelerate the development of the Thar Desert's coal resources.
The fixed 20% internal rate of return is to be applied on a cost-plus basis determination of the coal price.
"The extension of the 20% IRR (in US dollar terms) demonstrates the commitment of the government of Sindh to the development of Thar coal. This is an attractive rate of return, designed to encourage foreign inward investment for the development of Thar. Oracle is committed to this project which will help to alleviate the country's power shortfall," Chief Executive Shahrukh Khan said in a statement.
Oracle added that following the recent rights issue by its subsidiary Sindh Carbon Energy Ltd, Oracle has increased its stake in SCEL to 98% from 80%. The additional shares were secured by converting the amount equivalent to GBP600,000 of Oracle's loan to SCEL.
Shares in Oracle were trading down 4.9% at 2.42 pence on Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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