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Oracle progresses towards financial close

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World Coal,

Oracle Coalfields continues to make progress towards financial close on its Thar coal project in Pakistan, said the company’s Chairman, Anthony Scutt, in its latest results release.

In June this year, Oracle signed a shareholders framework agreement with new and existing Chinese partners in which it was proposed that the Chinese partners will take a 70% equity interest in the project, as well as acting as EPC contractors for the mine and power plant.

“We are now working towards finalizing a shareholder agreement and details of the EPC contracts for both the mine and the power plant,” said Scutt. “Our Chinese partners are taking the lead in discussions on debt financing with Sinosure, the Chinese Export and Credit Insurance Corp.”

The Pakistan and regional governments also remain supportive of the project. “The power shortage in Pakistan remains acute and the government remains steadfast in its objective with dealing with [it],” said Shahrukh Khan, CEO of Oracle.

“The government continues to support the government in the development of the coal mine and power project,” continued Khan. Both federal and provincial government has put in place fiscal incentives to spur development of the Thar coal resource. It has also been included in the China Pakistan Economic Corridor, allowing projects to access finance from Chinese banks with Chinese government support.

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