Business
Memorandum of Understanding signed with Lucky C...
Memorandum of Understanding signed with Lucky C....
About this update from Oracle Power Plc
[{"type":"text","content":"\n \n\n 11/01/2010\n GB00B23JN426/GBP/PLUS-exn\n\n Oracle Coalfields Plc\n (\"Oracle\" or the \"Company\")\n\nMemorandum of Understanding signed with Lucky Cement Limited, a major cement manufacturer in Sindh\n Province, Pakistan\n\nThe Board of Oracle Coalfields PLC (PLUS: ORCP) (\"Oracle\" or \"the Company\"), the UK developer of a\n1.4 billion tonne coal deposit in southern Pakistan, is pleased to announce that the Company has\nentered into a Memorandum of Understanding (\"MOU\") with Lucky Cement Limited (\"LUCKY\"), a major\ncement manufacturer and exporter based in Pakistan.\n\nBrief background on LUCKY\n\nLucky Cement Limited is a subsidiary of Yunus Brothers Group (\"YB Group\"), one of the largest\nbusiness groups in Pakistan and has been based in Karachi for over 50 years. The YB Group is\nengaged in diversified manufacturing activities including textiles, and power generation. Lucky\nCement is listed on the Karachi, Lahore and Islamabad stock exchanges and its Global Depositary\nReceipts are traded on the London Stock Exchange. LUCKY's local market capitalisation is US$260\nmillion equivalent.\n\nLUCKY is currently the largest cement company in Pakistan and the country's largest exporter to\nthe Middle-East, India, Sri Lanka and Africa. In 2009, LUCKY posted year-on-year revenue and\noperating profit growth of 55% and 135%, respectively.\n\nSalient features of MOU\n\nThe salient features of the MOU are as follows:\n\n - Oracle's primary objective is the development of its Block VI project to supply lignite\n coal to a mine-mouth power plant(s). In addition and in the interim, the Company is also pursuing\n the potential for early cash flow from the supply of lignite coal to the local cement industry.\n\n - LUCKY has expressed an interest in using the indigenous coal to be mined at Block VI,\n Tharparkar, after techno-commercial evaluation of the coal, for its cement plants.\n\n - LUCKY shall subsequently assess the costing for transportation and utilisation of this\n lignite in its cement kilns with minimum effects on the pyro-process and shall try to reach a\n commercially viable solution before entering into a Coal Supply Agreement (\"CSA\").\n\n - Oracle and LUCKY have agreed to cooperate on the exchange of relevant information and\n future planning so that they may reach a workable arrangement for Oracle through i...