Wardell Armstrong International Scoping Report ...
17/06/2009
GB00B23JN426/GBP/PLUS-exn
Oracle Coalfields PLC
Wardell Armstrong International Scoping Report Completed
Environmental & Social Impact Assessment Commenced
Oracle Coalfields PLC (PLUS: ORCP) ("Oracle" or "the Company"), the UK developer of the 1.4 billion tonne
Block VI coal deposit in southern Pakistan, is pleased to announce that Wardell Armstrong International (WAI)
has completed the scoping report in respect of their proposed Thar Coalfield development. WAI has commenced
the Environmental & Social Impact Assessment (ESIA), to be undertaken in parallel with the phases of Bankable
Feasibility Study (BFS).
Following a site visit in April, WAI has released its scoping report. This enabling document sets out the
main project parameters for the baseline study and identifies the potential significant environmental and
social impacts of the planned open pit mining operation. A photographic record of the site was compiled, a
visual reconnaissance level assessment of on-site conditions was obtained and various settlements within Block
VI and nearby villages were visited to form an initial assessment of environmental conditions and nature of
communities that may potentially be affected by the project.
During the visit, meetings with Non-Governmental Organisations (NGOs) and local communities revealed strong
support for the Block VI project, as well as expectations of positive employment and economic benefits arising
from it. They also expressed their concerns to be addressed within the study and pledged support to
facilitate the ESIA process.
The formal ESIA for the Block VI project will be prepared to a standard appropriate for a Feasibility Study to
World Bank (WB) and International Finance Corporation (IFC) requirements and will follow the Equator
Principles and IFC Performance Standards. In addition, the work will also meet in-country EIA requirements.
The next stage of the ESIA process is the collection of environmental and social baseline data to provide a
current site setting and sufficient information to enable detailed impact prediction, both in terms of
significance and scale. This will include data on land take, flora/fauna, air quality & noise, water (both
surface and groundwater), and social baseline information.
Although the Thar Desert is one of the more highly vegetated deserts of the world, with a variety of shrub and
scrub species, it is considered to have relatively low biodiversity with regard to flora and fauna. There are
no permanent surface water features in the area of the Block VI project, although during the rainy season
surface ponds and flows are present, creating potential for discharge from mining operations to enter these
surface water flows.
Three aquifers are present in Block VI, two above the coal seam and one beneath it. Open pit mining will
require the aquifers above the coal seam to be dewatered, and this will provide water for both the project and
the local population.
There are various small settlements present within Block IV but, the report states, given the potential job
creation leading to multiplier effect on the local economy, the local communities appear receptive to the
project. It is to be noted that much of the population in the Tharparkar District live in relative poverty,
having few options for income generating activities. The major economic activities in the area are animal
husbandry and agriculture which is mainly for subsistence and not for market sale.
In addition to the scoping work, Oracle will be appointing contractors to carry out sub-crop drilling, hydro-
geological and geotechnical studies, geophysical reports and mine design work over the coming months. The BFS
is expected to be completed in the first half of 2010, in line with the original timetable.
Shahrukh Khan, Chairman, Oracle Coalfields PLC commented:
"This is another step forward in delivering on the Bankable Feasibility Study in early 2010. As the Report
states, we have the support of both the National and Provincial Government, and equally important that of the
local community to whom the project brings work, electricity and additional water. The project supports the
wider need for power generation in the country."
17 June 2009
The Directors of the Issuer accept responsibility for this announcement.
ENQUIRIES:
Oracle Coalfields PLC
Shahrukh Khan, Chairman
Telephone: +44 (0) 1366500722
Email: s.khan@oraclecoalfields.com
St Helen's Capital plc
Duncan Vasey/Barry Hocken
Telephone: 020 7628 5582
Email: barry.hocken@sthelenscapital.com
Lothbury Financial
Michael Padley, Ron Marshman
Telephone: 020 7011 9411
michael.padley@lothburyfinancial.com
ron.marshman@lothburyfinancial.com
WEBSITE: www.oraclecoalfields.com
About Oracle:
Oracle Coalfields plc is a London-based resource exploration and development company with an 80 per cent owned
subsidiary (Sindh Carbon Energy Limited) operating in Pakistan. The Company's shares are quoted on the PLUS
markets (symbol: ORCP).
Oracle's flagship project is the Block VI coal project located on the Thar coalfield in the eastern Sindh
province, Pakistan. Block VI hosts a JORC-compliant resource of 1.4 billion tonnes of which 371 million tonnes
are in the proven category.
The Company also owns the Indus East coal project in Pakistan where a pre-feasibility study carried out by
Dargo Associates has confirmed a JORC-compliant inferred resource of 365 million tonnes.
Oracle Coalfields plc
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