Oracle Coalfields is negotiating the details of engineering contracts for its 600 MW mine-mouth power plant project in Pakistan, with talks also under way on debt financing.
Oracle aims to sign an EPC term sheet with contractor SEPCO and marking agreement on a number of key issues ahead of the full EPC contracts.
The Environmental and Social Impact Assessment is also being finalized and work on resettlement of people affected by the project has started.
Oracle’s CEO Shahrukh Khan said: “In preparation for financial closure, we are currently finalizing details of the Engineering Procurement and Construction contracts with our Chinese partners for both the mine and the power plant, and also debt financing supported by Sinosure, the state-owned China Export and Credit Insurance Corporation.
“The power shortage in Pakistan remains acute and the government remains steadfast in its objective of dealing with the country’s energy crisis.
“We are grateful for the investor support the company has received to date and remain on course in our ambition to develop Pakistan’s first large scale coal mining and power plant project in the private sector,” he added.
The company’s primary interest is the Thar Coalfield Block VI lignite licence area and mine mouth power plant located in the Sindh Province of southeast Pakistan.
Block VI is a 1.4 billion tonnes resource with 529 million tonnes of JORC-compliant mineral resource and 113 million tonnes of JORC proven reserves within the mining area of the licence.
The AIM-listed company recorded losses in the six months to June 2015 of £529,000 compared to the loss of £378,000 in the same period of 2014, with cash at June 30 of £1.47 million.