Mining Lease
Released : 11 December 2014
RNS Number :
Oracle Coalfields PLC:
11 December 2014
Oracle Coalfields PLC
("Oracle" or the "Company")
Mining Lease
The Company advises that its subsidiary Sindh Carbon Energy Limited ("SCEL") has received a Notification of Cancellation of its Mining Lease for Block VI of the Thar coalfield from the Coal Mines Department of the Sindh Government. The decision of the Directorate General of Coal Mines Department is subject to appeal, and has been challenged through SCEL under Rule 71 of Sindh Mining Concessions Rules 2002. The Company further advises that, in its view and in the view of its lawyers, this cancellation is without legal foundation.
The Company is taking steps through all relevant channels to have this Notification withdrawn.
The Company remains fully committed to the development of Block VI under the terms of the Mining Lease. Following the signing, on 23 September 2014, of an EPC Framework Agreement with SEPCO, the proposed Chinese contractor for the project, the Company is in detailed discussion on the EPC Term Sheets.
Shahrukh Khan, CEO of Oracle, said:
"Whilst this is an unexpected and arbitrary decision, on the basis of our substantive and detailed appeal I expect a constructive dialogue with the authorities leading to withdrawal of the notification of the cancellation of the mining lease. Oracle remains fully committed to the development of our Block VI of the Thar coal project."
Ends
For further information:
Oracle Coalfields PLC Shahrukh Khan |
+44 (0) 203 102 4807 |
Blythe Weigh Communications Tim Blythe, Halimah Hussain |
+44 (0) 207 138 3204 |
Fortbridge Consulting Matt Beale/Bill Kemmery |
+44 (0)7966 389196 |
Peterhouse Corporate Finance Charles Goodfellow |
+44 (0)20 7220 9791 |
Grant Thornton UK LLP Salmaan Khawaja, David Hignell, Jamie Barklem |
+44 (0) 207 373 5100 |
