Oracle Power PLC’s (LON:ORCP) Thar project is even more relevant for Pakistan given the country’s drive to become self-sufficient in thermal fuel and gas for fertiliser, according to the group's chief executive Naheed Memon.
Thar is being developed through a consortium of Oracle Power, China National Coal Development Company and The Private Office of His Highness Sheikh Ahmed Bin Dalmook Al Maktoum.
An application for a Letter of Intent (LOI) for 1,320 MW power plant at the mine site has been submitted, said Nemon in a statement with its half-year results to end June 2020, but has been delayed by coronavirus (COVID-19) restrictions and administrative changes at the Power Ministry.
The project has been enlarged to a coal to gas for urea plant, and coal to liquid facilities, to be set up in a large industrial park on-site and estimated to cost approximately US$8bn.
That makes the Thar development one of the largest private projects in Pakistan and thus involves permissions and coordination between a large number of government agencies, Nemon noted.
As part of an additional collaboration with the Private Office of His Highness Sheikh Ahmed Dalmook Al Maktoum, Oracle Power is looking at mining opportunities in Africa.
“We are currently assessing an iron ore asset in the Republic of Guinea. Since then, we have also begun work on exploring potential investments in other natural resources opportunities,” Nemon said in the update.
Results for the half-year to end June showed a reduced loss of £364,000 (2019: £482,000).
Since the half-year, the company has agreed a Subscription and Financing Agreement for an initial £1.5m advance and a further conditional £45m placing facility.
Overhead running costs have also been reduced by 23.3% (2019: £110,000).