logo-loader

Oracle Coalfields signs framework deal for US$1.3bn Thar development

Published: 16:43 25 Sep 2014 AEST

coal_lump350_5423ba541575a

Oracle Coalfields (LON:ORCP) has signed a framework agreement with Chinese firm SEPCO for the development of its huge coal and power project at Thar in Pakistan.

The Engineering Procurement and Construction (EPC) deal covers construction of both the coal mine and 600 megawatt (Mw) power plant planned for the site.

SEPCO has also proposed a financing structure that would see up to 85% of the US$1.3bn cost securitised, with the money put up by Sinosure, the China Export & Credit Insurance Corporation, and other Chinese banks.

Costings are subject to fine tuning ahead of the signing of a finalised contract, which is expected within the next six months.

Once the final investment decision has been taken, groundwork is expected to start on both the mine and power plant in 2015.

SEPCO may also take a 10% equity stake in 10% in EPL, a vehicle that will be set up in Pakistan by Oracle.

Oracle added the project will be implemented through two Pakistani incorporated subsidiaries: coal mining subsidiary Sindh Carbon Energy Limited (SCEL) and Electric Power Limited (EPL).

Shahrukh Khan, Oracle’s chief executive, said: "Entering the EPC Framework Agreement with and receiving a financing proposal from one of China's largest State-Owned Enterprises in the energy sector is another step towards bringing the project to reality.

Both SEPCO and Oracle are eager to succeed in the development of our integrated coal mine and power plant project and to play an effective role in addressing Pakistan's energy crisis."

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

4 hours, 59 minutes ago