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Coal

Oracle Coal up again on framework deal for Thar project

The group is developing its 1.4bn Thar coal and power project in the Thar desert, south-east of Sindh Province, Pakistan.

Shares in Oracle Coalfields PLC (LON:ORCP) were up again on Monday, having surged on Friday afternoon after the firm confirmed a new Chinese deal.

The group is developing a 1.4bn Thar coal and power project in the Thar desert, south-east of Sindh Province, Pakistan.

On Friday, it noted high volumes of shares traded and confirmed it had inked a shareholder framework agreement, whereby "a consortium of new and existing Chinese partners will take 70% equity in its subsidiaries in Pakistan in order to advance the development of the project".

A further announcement will be made in due course, it added.

The firm is eyeing financial close for the project so it can get it off the ground.

In full year results in March this year, the company said that work this year would concentrate on formalising agreements and contracts to bring the project to "full implementation" along with securing all the financing arrangements, including equity for funding.

The idea behind the 4Mtpa mine and a first stage 600MW power plant at the mouth is based on figures like these - that the current shortfall in Pakistan of generating capacity of 5,500MW will continue until at least 2020.

The cost of realising this project is expected to be $1.6bn

On Monday, shares added 5.47% to 3.375p in early deals.

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