24th Sep 2013 07:15
LONDON (Alliance News) - Oracle Coalfields PLC Tuesday said it has signed a joint development agreement with China CAMC Engineering Co Ltd for the development of its coal mine and power plant project.
The developer of a lignite mineral property in the south-eastern desert of Sindh Province, Pakistan, said the agreement is for two years and includes the Chinese company assisting with seeking debt financing, likely from Chinese banks, for construction of the mine and power plant.
It said that once debt is secured at a competitive price, the companies will sign an engineering, procurement and construction contract for the coal and power plant project under which it is expected that plant development will commence in the second half of 2014, production at the open pit mining operation will start in 2015, and the power plant will have a production capacity of 300 Mega Watts.
"This is an important step forward for Oracle and its shareholders and brings us to within two years of our coal mine being in operation," Oracle Chairman Adrian Loader said in a statement.
Chief Executive Shahrukh Khan added: "Initially we will be producing 2.4 million tonnes of coal per year which will supply a 300 Mega Watt power station. Eventually we hope that this will grow to production of five to six million tonnes of coal per year for a 1,100 Mega Watt plant."
China CAMC Engineering Co Ltd is a subsidiary of state-owned China National Machinery Industry Corporation.
Oracle shares were up 27.7% at 1.98 pence early Tuesday, one of the biggest gains on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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