Thar Block VI Developments
Oracle Power Plc / EPIC: ORCP / Market: AIM / Sector: Mining
25 February 2020
Oracle Power PLC
("Oracle", the "Company" or the "Group")
Development of Block VI Discussed in Meeting Between Chief Minister of the Government of Sindh and the Chairman of the China Pakistan Economic Corridor Authority
Proposed Construction of 105km Rail Line to open up Thar Coal Reserves
Oracle Power PLC (AIM:ORCP) is pleased to note the meeting held in Karachi, Pakistan, on Friday, 21 February 2020 (the "Meeting") where the Chief Minister of the Government of Sindh, Pakistan, Syed Murad Ali Shah ("CM Shah"), met with the Chairman of the China-Pakistan Economic Corridor ("CPEC") Authority, Lieutenant General (Retd) Asim Saleem Bajwa. The Meeting was held to discuss several CPEC-related projects, including Oracle's Thar Block VI, and followed on from a recent meeting between Oracle CEO, Naheed Memon, and the Chairman of CPEC on Monday, 10 February 2020.
The Meeting included significant discussions regarding the proposed development of a 105km railway from Chhor to Islamkot line, to pass through the Thar desert, thereby enabling access to Pakistan's rail network, to transport coal from the Thar coalfields upcountry, which would open up additional potential customers across the country, complementing the Company's proposed mine mouth power plant.
The proposed development of Block VI should play a significant role with respect to Pakistan's energy security. In addition, the potential of coal gasification into fertilizer projects, and coal to liquids, is paramount to addressing food security issues and reduce fuel imports into Pakistan.
These positive developments follow the announcement of 19 February 2020 of the signing of the Consortium Agreement between the Company, China National Coal Development Company Ltd. ("China Coal") and the private office of His Highness Sheikh Ahmed Bin Dalmook Juma Al Maktoum ("His Highness"), under which the development of a lignite coal mine in Thar Block VI will be progressed.
A high-level visit to Pakistan from Chinese officials is expected in mid-2020 and the progression of CPEC-Thar projects is expected to be an important part of the agenda for this visit. The Company notes from press comment in Pakistan that Beijing is understood to have requested that the 10th Joint Coordination Committee ("JCC") convenes earlier than the previously scheduled June/July 2020. The JCC forms the government-to-government meetings between Pakistan and China to discuss CPEC projects, of which Block VI remains on the Priority List.
Naheed Memon, CEO of Oracle, said:
"The strategic importance of the Thar Block, in both a domestic and international capacity, is clearly demonstrated through these encouraging bi-lateral conversations. Furthermore, the assistance from CPEC, together with the support that we have received from our partners and investors, as evidenced by the recent Consortium Agreement signed between Oracle, China Coal and the private office of His Highness, who is also a shareholder in the Company and recently elected to lock-up his shareholding for one year, underpins the positive position that Oracle is in to achieve its operational objectives.
"Block VI, situated within the broader Thar desert which houses the sixth largest lignite resource globally with in excess of 175 billion tonnes, has the potential to be one of Pakistan's most valuable asset if developed to be used for power, gas, liquid and for domestic and regional sale to industry. We are pleased to be making real progress with the backing of these prominent and globally influential international groups."
For further information:
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Oracle Power PLC Naheed Memon
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+44 (0) 203 580 4314 |
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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) 203 463 5000 |
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Shard Capital (Joint Broker) Damon Heath Isabella Pierre
St Brides Partners Limited (Financial PR) Susie Geliher Catherine Leftley Hannah Platt |
+44 (0) 20 7186 9952
+44 (0) 20 7236 1177
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