Prairie Mining has started a prefeasibility study at the Lublin coal project in Poland.
The Lublin project is reported to be the premium thermal and semi-soft metallurgical coal project in the Lublin Coal Basin. The project lies adjacent to the Bogdanka mine – the operator of which, Lubelski Wegiel Bogdanka, recently lost a bid to expand its mining reserves.
Prairie, an Australian firm, has been protected from any mining encroach by Bogdanka by an investment protection agreement between Poland and Australia.
A scoping study earlier this year confirmed the potential for a high-margin semi soft metallurgical and premium thermal coal operation, according to Energy Business Review. The study estimated annual operating costs at US$ 37/t for the project – placing it at the lowest position on the global cost curve for coal delivered into Europe.
The prefeasibility study should be completed during H1 2015.
Prairie CEO Ben Stoikovich said: "We are looking forward to rapidly progressing the PFS for the Lublin Coal Project and have assembled a strong team of study consultants with skills and experience in deep underground coal mining that I am confident will deliver the first study of its type in accordance with international standards within the entire Lublin Coal Basin.”
"In addition, we will continue to upgrade the existing coal resource through targeted drilling and will initiate discussions with European steel mills and coal power plants who we believe will place strategic value on a significant new independent production source from within the heartland of industrial Europe," Stoikovich added.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/coal/09092014/prairie-mining-begins-prefeasibility-study-in-poland-1300/