Oracle Coalfields has extended its Engineering, Procurement and Construction (EPC) framework agreement with Chinese firm SEPCO.
The exclusive agreement between the two, that are negotiating term sheets for construction of a combined coal and power plant at Thar in Pakistan, now runs until the end of 2015.
Discussions have also started with Chinese finance house Sinosure on proposals to securitise up to 85% of the cost of the two EPC contracts.
Shahrukh Khan, Oracle Coalfield’s chief executive, said: "Following the restoration of the mining lease, SEPCO and ourselves are keen to progress the project in an expeditious manner."
Oracle Coalfield’s Thar coal-to-power project has been included in the Chinese-Pakistan Economic Corridor, opening the project up to further Chinese funding.