(Alliance News) -Â Prairie Mining Ltd on Tuesday alleged "discriminatory treatment" as it noted a press release from Lubelski Wegiel Bogdanka SA regarding the K6-7 deposit area in Poland.
Polish coal producer Bogdanka said it has been awarded a mining concession by Polish government authorities for the K6-7 deposit area.
The K6-7 deposit forms an "integral part" of Prairie's planned Jan Karski mine at its Lublin concession, it said.
Prairie said it is not able to make further comment regarding Bogdanka's announcement until formal Polish government notifications are received and a legal assessment can be made.
"Prairie will continue to fulfil its continuous disclosure obligations, however the award of a mining concession to Bogdanka continues to demonstrate evidence of the discriminatory treatment faced by Prairie as a foreign investor in Poland," the company said.
In February, the Poland-focused coal development company formally notified the government of an existing investment dispute between it and the Polish authorities.
"The company remains open to resolving the dispute with the Polish government amicably. As of the date of this announcement, no amicable resolution of the dispute has occurred, since the Polish government has declined to participate in substantive discussions related to the dispute," Prairie said.
It is currently working with legal advisers to prepare submissions and finalise funding arrangements for international arbitration, and is taking "all necessary actions" to pursue its legal rights regarding its investments in Poland.
Shares in Prairie were untraded at 11.00 pence in London on Tuesday.
By Lucy Heming;Â lucyheming@alliancenews.com
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