Oracle Coalfields (LON:ORCP) is preparing final details of the engineering, procurement and construction (EPC) contracts for the proposed coal mine and associated power plant at its Thar project in Pakistan.
Oracle has two Chinese partners that will handle the EPC works: CAMCE, a division of Sinomach, for the development of a 4.2mln tonnes mine; and SEPCO, a subsidiary of Power Construction Corporation of China, for the development of a 600 megawatt (MW) mine-mouth power plant.
Work is underway on the debt financing with Sinosure, the state-owned China Export and Credit Insurance Corporation, while talks have begun with the provincial Sindh government departments over coal prices and are scheduled to start shortly on electricity tariffs with the federal authorities.
Transmission lines and resettlement are additional plans to be finalised during the course of this year, said the company.
Shahrukh Khan, Oracle’s chief executive, added: "The power shortage in Pakistan remains acute and the Government remains steadfast in its objective of dealing with the country's energy crisis.
"The company has a plan to deliver various milestones in preparation for the larger funding required to proceed with mine and power plant development in 2015.
“The recent equity placing [£775,000] announced by the company assists us in delivering these milestones which we are endeavouring to reach by the end of 2014."