Last checked at 8 Nov 2012 07:00
08 November 2012
Oracle Coalfields PLC
("Oracle" or "The Company")
Oracle signs MOU with Thatta Cement for coal supply
Oracle Coalfields PLC (AIM: ORCP), the UK coal developer of a lignite mineral property located in the south-eastern desert of the Sindh Province, Pakistan, today announces that it has signed a Memorandum of Understanding ("MOU") with Thatta Cement Company Limited ("Thatta") for the proposed supply of coal from the mine that Oracle is developing in Block VI of the Thar Coalfield.
The MOU, which is between Oracle's 80 per cent owned subsidiary Sindh Carbon Energy Limited and Thatta, will see Oracle supply dried coal to Thatta's cement works. Further, the representatives of parties will meet at an appropriate time mutually agreed between them to sign a Coal Supply Agreement and agree, inter alia, the specifications, quantity and price of coal to be supplied.
Thatta, which is part of the Arif Habib Group, one of Pakistan's most renowned business groups, is listed on the Karachi Stock Exchange. The group has a diversified blend of expertise and interests in various industrial and financial concerns, including fertiliser, steel, cement, real estate, commercial banking, assets management, securities brokerage and private equity.
The MOU supplements the Memorandum of Understanding signed earlier with Lucky Cement Limited, a major cement manufacturer in Pakistan, and provides Oracle with the option of increasing production volumes, in the medium to long-term, at its project to supply pre-sourced demand from Pakistan's cement industry.
Shahrukh Khan, CEO of Oracle, said:
"This agreement is a further indication of the support that our project has from industry in Pakistan. The MOUs with Thatta and Lucky Cement, alongside the Joint Development Agreement that we signed previously with Karachi Electric Supply Company, provide us with a sustainable market for our product and marks a further, important step forward in our efforts to bring our project into production.
"The Implementation Plan that we announced in September this year, which detailed reduced investment and production costs, confirmed the commercial viability of our project. We continue to make progress towards our ultimate goal of delivering a producing coal mine that will help to resolve Pakistan's energy crisis while simultaneously delivering long-term sustainable returns for our loyal shareholder base.
"We will be adopting a phased approach in terms of production and our current focus is now firmly on securing the project finance for development work required to bring the project into phase 1 of production."
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For further information:
Oracle Coalfields PLC
Shahrukh Khan, CEO +44 (0) 20 7317 4050
Blythe Weigh Communications
Tim Blythe / Paul Weigh / Robert Kellner +44 (0) 20 7138 3204
Seymour Pierce (Nominated Adviser & Joint Broker)
Stewart Dickson / Julian Erleigh (Corporate Finance) +44 (0) 20 7107 8000
Richard Redmayne / Jacqui Briscoe (Corporate Broking)
Novus Capital Markets (Joint Broker)
Denis Christie, Charles Goodfellow +44 (0) 20 7107 1881