CPEC acknowledges Block VI
19 November 2019
Oracle Power PLC
("Oracle", the "Company" or the "Group")
CPEC acknowledges Thar Block VI for Coal Gasification to Fertilizer initiative
In parallel with the ongoing CPEC Mine-Power Project
Oracle Power PLC (AIM:ORCP), the UK energy developer of a combined lignite mineral resource and mine mouth power plant located in the Thar desert in the south-east of Sindh Province, Pakistan, notes recent media reports and is pleased to inform shareholders that at the 9th Joint Cooperation Committee Meeting ("JCC") on the China-Pakistan Economic Corridor ("CPEC") on 6 November 2019, Oracle's 100% owned Thar Block VI Coal Project was acknowledged for a potential intra-government initiative between Pakistan and China with respect to coal gasification into fertilizer projects. The context of this development is a broader Pakistan initiative to address the anticipated 2.6Mtpa shortfall of urea by 2026-2027 (as estimated by the Government of Sindh). The use of lignite, via the gasification process, in the production of urea is important in addressing this anticipated shortfall and in so doing supporting the critical agricultural sector in Pakistan.
Block VI's inclusion was noted in the minutes of the JCC meeting between representatives of both the Chinese and Pakistan governments, with both sides expressing a desire to undertake a feasibility study for further evaluation, within the CPEC framework. In addition, Oracle has also had subsequent discussions with various State-Owned Enterprises, in both Pakistan and China, which had previously expressed a willingness to provide financial and technical support in the event Block VI was included in a coal gasification to fertiliser initiative. The Company now intends to progress these discussions and anticipates providing an update to the market in due course.
Given the significant size of Oracle's Block VI coal resource, with a JORC resource estimate of 529Mt and significant additional potential, this proposed new initiative runs in parallel to the previously announced coal mine and mine mouth power plant currently being developed by Oracle and its MOU partners.
Naheed Memon, CEO of Oracle, said:
"It gives me great pleasure to advise our shareholders of this latest development. We believe that this demonstrates that our project is one of the Pakistan Government's primary assets with respect to coal gasification into fertiliser. This initiative has the potential to have a transformational impact on food security in Pakistan and the acknowledgement of Block VI in this regard, alongside its existing prominence as an integrated mine-power plant project, is, in the Board's view, a hallmark moment for Oracle.
The potential scale and opportunity of this development is truly significant, especially given the potential synergies with our ongoing development of coal mine and mine mouth power. Indeed, we believe our Block VI is the only project in Thar which is now supported by CPEC for both power generation and gasification.
I look forward to updating the market on both these aspects in the near term."
For further information please contact:
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Oracle Power PLC Naheed Memon
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+44 (0) 20 3580 4316 |
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Strand Hanson Limited (Nominated Adviser) Rory Murphy, James Harris, Jack Botros
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+44 (0) 20 7409 3494 |
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Brandon Hill Capital Limited (Joint Broker) Oliver Stansfield
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+44 (0) 20 3463 5000 |
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