Business
Determination of Feasibility Stage Coal Price
Determination of Feasibility Stage Coal Price.
About this update from Oracle Power Plc
[{"type":"text","content":"\n \nRNS Number : 4870B Oracle Coalfields PLC 17 June 2016 \n\nDetermination of Feasibility Stage Coal Price\nReleased : 17 June 2016\nRNS Number : \nOracle Coalfields PLC\n17 June 2016\n \n \n17 June 2016 \nOracle Coalfields PLC\n(\"Oracle\" or the \"Company\")\nDetermination of Feasibility Stage Coal Price\nOracle Coalfields PLC (AIM:ORCP), the UK energy developer of a combined lignite mineral resource and mine mouth power plant located in the Thar desert in the south-east of Sindh Province, Pakistan, announces that the coal price, based on the mine feasibility study, has been determined by the Thar Coal and Energy Board (\"TCEB\"), Government of Sindh, at an average price of US$60.23/tonne for an annual production of 4.0 million tonnes per annum.\n \nHighlights : \n· Coal price regulated at an average of US$60.23/tonne over the thirty year period of the lease for a 4.0 million tonne per annum mine;\n· Mine capital costs (including financing costs) reduced from US$879 million, as included in the original coal price petition, to $673 million, as determined by the regulator;\n· 70:30 debt to equity financing structure permitted;\n \n Shahrukh Khan, CEO of Oracle, said :\n \n\"The determination of our coal price by TCEB is an important milestone for the Company and represents the latest step towards our goal of developing a producing mine capable of supplying indigenous coal. The regulated coal pricing mechanism that applies to Thar coal isolates the project from the price fluctuations of internationally traded coal and provides an element of certainty to the equity investor. \n \n\"We thank the relevant authorities in Pakistan for their work in determining our coal price. We remain steadfast in our determination to develop a long term sustainable solution to the acute shortage of power in Pakistan.\n \n\"I look forward to updating the market on further progress in due course.\"\n \nTo encourage the development of the major coal resource discovered in the Sindh Province, the Government of Sindh has put in place fiscal incentives that include a cost-plus arrangement, under which holders of mining leases in the Thar desert are allowed a coal price and electricity t...