Prairie Mining Limited Approval of Spatial Development Plan Received (6309O)
August 22 2017 - 3:30AM
UK Regulatory
TIDMPDZ
RNS Number : 6309O
Prairie Mining Limited
22 August 2017
PRAIRIE MINING LIMITED
NEWS RELEASE | 22 August 2017
APPROVAL OF SPATIAL DEVELOPMENT PLAN RECEIVED
-- Prairie receives spatial development plan approval for the Jan Karski Mine site
-- Poland's Ministry of Agriculture approves rezoning of 56
hectares of agricultural land for industrial use to allow for
construction of a mine site, shafts and associated surface
infrastructure
-- Jan Karski is now one of the most advanced new large scale
coking coal projects in the Northern Hemisphere
-- Prairie notes the current strong coking coal price
environment with spot market prices for hard coking coal remaining
at US$200/t; semi-soft coking coal prices at USD105/t and benchmark
for high volatile semi-soft coking coal at USD140/t
-- Prairie continues to advance its two World Class coking coal
projects in Poland alongside partners and investors including China
Coal and CD Capital
Prairie Mining Limited ("Prairie" or "Company") is pleased to
announce the formal approval of the spatial development plan
(rezoning) for its 100% owned high value ultra-low ash semi-soft
coking coal ("SSCC") Jan Karski Mine in the Lublin Province, south
east Poland ("Jan Karski" or "Project").
Prairie's Chief Executive Officer Ben Stoikovich commented:
"With approval of the spatial development plan we have
taken a major step forward towards applying
for a Mining Concession in order to build the Jan Karski
Mine together with our strategic partner China
Coal, and ultimately unlock significant value for all
stakeholders. We continue to enjoy strong support
from the community, local Municipalities and the Regional
Government.
Jan Karski is now one of the most advanced coking coal
projects of significant scale in the Northern
Hemisphere and its development will provide substantial
economic and social benefits for Eastern Poland.
We now look forward to submitting the ESIA for formal
Environmental Consent and our Mining
Concession application in due course."
-----------------------------------------------------------
SPATIAL PLANNING (REZONING) APPROVAL FOR JAN KARSKI
Following completion of community consultation and submission by
Prairie of all applications required to change the local spatial
development plan to effect the rezoning of land for mining use, the
Gmina (Municipality) of Siedliszcze has officially adopted a new
spatial development plan that will allow for the construction of
the Jan Karski Mine site in the location of Kulik.
The Resolution of the Town Council of Siedliszcze on "adoption
of zoning plan for stage I No. XXIX/250/17" was passed completing
yet another significant milestone towards Prairie obtaining a
Mining Concession for Jan Karski.
The spatial planning approval process was conducted in parallel
with approval by Poland's Ministry of Agriculture for the rezoning
of 56 hectares of agricultural land to be designated for industrial
(mining) purposes. This 56 hectares is in the Kulik area where the
Jan Karski mine shafts and major surface facilities will be
located, as per the approved Jan Karski Deposit Development Plan
and the ongoing China Coal Bankable Feasibility Study.
This follows the achievement by Prairie of another significant
permitting milestone following official approval by the Lublin
Regional Mining Authority of the Jan Karski Deposit Development
Plan ("DDP") in May 2017 (refer to ASX announcement dated 25 May
2017).
Prairie remains on track to have its full application for a
Mining Concession submitted for Jan Karski in the coming months. In
Poland, a Mining Concession application comprises the approval of a
DDP, a spatial development plan (rezoning of land for mining use),
and an Environmental Social Impact Assessment ("ESIA") in the form
of an Environmental Consent decision. Jan Karski's DDP and Spatial
Development Plan have now been officially approved.
Furthermore, Prairie has substantially completed the ESIA for
Jan Karski and is expecting to make a formal submission to regional
authorities for Environmental Consent in the coming weeks. Granting
of the Environmental Consent will fulfil all of the regulatory
prerequisites for the Company to submit a formal Mining Concession
application.
STRONG Coking Coal Environment
Prairie notes the current strong coking coal price environment
with spot market prices for hard coking coal FOB Australia
remaining at around US$200/t. The strength in coking coal prices
has been attributed to strong cash margins of Chinese steel mills
currently well above US$100/t compared to the previous 5-year
average of US$25/t, production cuts by some Chinese miners, and
production disruptions in Australia which have recently included
South32 calling force majeure at its Illawarra Coal operations and
ongoing labour issues at Glencore's Oaky North mine.
Semi-soft Coking Coal
SSCC prices FOB Australia remain at US$105/t and FOB USA
benchmark for high volatile SSCC remains at US$140/t.
The ultra-low ash content of Jan Karski's SSCC increases the
coals value-in-use to steel and coke makers, making the product
highly saleable in both the domestic European and international
markets. One of the key outcomes of utilising ultra-low ash coking
coal to produce coke is the resulting decreased fuel rate. This has
a key environmental benefit for steel makers that results in a
reduction in CO2 emissions per tonne of hot metal produced.
As Prairie announced in May 2017, following a benchmarking
exercise by independent specialists, the high value ultra-low ash
SSCC product from Jan Karski is expected to achieve a 10% premium
above the FOB Newcastle benchmark SSCC price. The standardized
reference benchmark is Rio Tinto "Hunter Valley" brand SSCC FOB
Newcastle.
As China Coal looks to complete a Chinese Bankable Feasibility
Study for the Jan Karski Mine in September, Prairie is further
developing a coal marketing strategy by ongoing identification and
evaluation of potential offtakers for Jan Karski's high value
ultra-low ash SSCC product.
To view this announcement in full including all illustrations
and figures please refer to www.pdz.com.au.
For further information, please contact:
Prairie Mining Limited Tel: +44 207 478
3900
Ben Stoikovich, Chief Email: info@pdz.com.au
Executive Officer
Sapan Ghai, Head of
Corporate Development
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCSEISWEFWSEEA
(END) Dow Jones Newswires
August 22, 2017 03:30 ET (07:30 GMT)
Prairie Mining (LSE:PDZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Prairie Mining (LSE:PDZ)
Historical Stock Chart
From Apr 2023 to Apr 2024
