Oracle Power Share News (ORCP)

LONDON (Alliance News) - Shares in Oracle Power PLC dropped on Wednesday after discussions over the Thar coal project in Pakistan with its Chinese partners have led to a change in how the project will be developed.

Shares in the coal miner were 11% lower at 0.36 pence on Wednesday.

Following discussions with Beijing Jingneng Power Co Ltd and PowerChina International Group Ltd, the three companies have decided to develop the mine in a single phase of 8 million tonnes a year, Oracle Power said.

This is instead the original plan to develop the mine in two phases, each for 4 million tonnes per year, a plan which Oracle Power considered "more capital intensive" than the new one.

As a result, the associated power plant will be developed as a single 2x660 megawatts unit, and Oracle has sent an application sent to the Pakistani Private Power & Infrastructure Board on this basis.

Oracle is in the process of updating the Environmental & Social Impact assessments as a result of the changed development plan and is assessing the required feasibility work for the revision.

In addition, Oracle said it has received GBP50,000 from Brandon Hill Capital Ltd, which is the initial drawdown amount under the GBP250,000 loan agreement entered on Thursday last week.

"Progress is being made with our partners as we look to optimise the project economics and minimise the ultimate capital required for the full development. I look forward to updating the market on further progress," said Chief Executive Officer Naheed Memon.