TIDMPDZ
RNS Number : 9137X
Prairie Mining Limited
30 November 2017
PRAIRIE MINING LIMITED
NEWS RELEASE | 30 November 2017
Strong Community Support as Jan Karski Environmental Permitting
Advances
-- Environmental permitting for Jan Karski advances following
successful submission of the Environmental and Social Impact
Assessment to the Lublin Regional Environment Directorate for
Environmental Consent
-- Community Consultation Program initiated in the Cyców
municipality within Lublin Province, showing strong community
support for development of Jan Karski
-- 74% of residents of Lublin Province support the building of a
new mine in the region per the results of a recent independent
poll
-- Overwhelming public support for the development of Jan Karski
demonstrated across the region with residents agreeing a new mine
would bring significant employment opportunities and economic
development to the region
-- China Coal Technical and Economic Studies for Jan Karski near
completion with Prairie hosting China Coal and the Jinan Mine
Design Institute in Poland to finalise capital cost estimates with
Polish sub-contractors
-- Jan Karski continues to be one of the most advanced new large
scale coking coal projects in the Northern Hemisphere, advancing
towards development alongside partners China Coal and CD
Capital
Prairie Mining Limited ("Prairie" or "Company") is pleased to
announce the formal submission of the Environmental and Social
Impact Assessment ("ESIA") and initiation of the public
consultation process 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 the submission of the ESIA and initiation of the public
consultation process, Prairie continues towards applying for a
Mining Concession to commence construction of the Jan Karski Mine
together with our strategic partner China Coal. We now look forward
to submitting our Mining Concession application in the upcoming
months.
A recent independent poll of residents demonstrates strong
support from local communities for major investment and job
creation in the Lublin region with construction of the Jan Karski
Mine. It is extremely positive to see that 74% of the residents of
Cyców support the construction of a new coal mine. Jan Karski is
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. During
November, we had the pleasure of hosting China Coal and the Jinan
Mine Design Institute in Poland to finalise capital cost estimates
for the Project and meet with Polish subcontractors. China Coal's
Technical and Economic Studies are now nearly complete and will
underpin a Chinese bank debt financing package for the construction
of Jan Karski."
SUBMISSIOn OF ESIA & Initiation of Public Consultation
An application for issuing the environmental decision together
with the ESIA was submitted to the Regional Director for
Environmental Protection ("RDOS") in Lublin on 6 October 2017.
Taking into account the RDOS's additional comments the motion and
ESIA were supplemented on 22 November 2017. The ESIA documentation
meets all the formal requirements and is being reviewed by the
RDOS.
Prairie is now waiting for approval of the ESIA in the form of
Environmental Consent decision, which is the last component to meet
all formal requirements to apply for the Mining Concession for
construction of Jan Karski. Independent environmental consultants
have confirmed Prairie has met all pre-requisite requirements and
can expect an environmental permit in due course.
As part of the environmental permitting process, the first
public consultation was held in the Cyców Municipality ("Cyców")
within Lublin Province ("Lublin") on 18 November 2017. The public
consultation was organised in accordance with international
standards, specifically, International Finance Corporation ("IFC")
Standards. The meeting was attended by local residents of the
Cyców, including the mayor of Cyców, Wies aw Pikula, and current
employees of the neighbouring Bogdanka mine. A presentation on Jan
Karski's development plans was given by Mr Miroslaw Taras
(Prairie's Group Executive), Witold Wo oszyn (Prairie's
Environmental and Planning Manager) and specialists from the
international environmental consulting group, Multiconsult Polska
Sp. z o.o. which had prepared the ESIA. Key advantages for the
local community related to employment opportunities and social
benefits associated with the development, construction and
operation of Jan Karski including:
-- creation of 2,000 direct employment positions and 10,000
indirect jobs for the region once operational;
-- increasing skills of the workforce and through the
implementation of International Standard training programmes;
-- stimulating the development of education, health services and
communications within the region; and
-- building a mine that creates new employment for generations
to come and career paths for families to remain in the region.
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
Deposit Development Plan ("DDP"), a Spatial Development Plan
(rezoning of land for mining use), and an ESIA in the form of an
Environmental Consent decision. Jan Karski's DDP and Spatial
Development Plan have already been officially approved.
Granting of the Environmental Consent will fulfil all the
regulatory prerequisites for the Company to submit a formal Mining
Concession application.
independent poll DEMONSTRATES strong community support for mine
development
Centrum Badań Marketingowych INDICATOR Sp. z o.o. ("CBM
Indicator") - an independent polling company with over 25 years
expertise in the Polish market - carried out extensive research on
public support for mine development in Lublin. The poll indicated
overwhelming support exists amongst residents and there is acute
awareness of the importance of coal supply for the Polish economy.
Results of the poll indicated 74% of those living in Lublin
supported the construction of a new mine in the region.
Key results are summarised below:
Do you support the construction of a new mine in Lublin?
Yes - 74%
No - 26%
Do you believe domestic coal mining is essential to Poland's
economy?
Yes - 92%
No - 8%
Do you believe a new mine in Lublin will decrease
unemployment?
Yes - 80%
No - 20%
Do you believe a new mine in Lublin will result in new
infrastructure?
Yes - 72%
No - 28%
According to CBM Indicator's poll, support for construction of a
new mine in the area is extremely high in Cyców, where 82% of
residents are aware of the vital role of coal for the Polish
industry and 74% agree to a mine being built in their commune or in
a neighbouring commune. Cyców already enjoys a lower unemployment
rate and significantly better local infrastructure when compared to
other municipalities in Lublin thanks to direct benefits of having
Bogdanka operating adjacent to Cyców and consequently, residents of
Cyców are familiar with the economic and social benefits mining can
bring.
China coal study for the Jan Karski Mine nears completion
In November 2017, the Company hosted a delegation in Poland
including China Coal No.5 Construction Company Ltd ("China Coal")
and the Chinese Government's officially authorised coal mine design
institute Jinan Mine Design Institute, during which capital cost
estimates for the construction and operation of Jan Karski were
finalised alongside domestic Polish specialists, subcontractors and
partners who will provide relevant Polish content.
Following the Chinese delegations visit to Poland, China Coal is
set to complete all Technical and Economic Studies ("Studies")
required and considered "bankable" by Chinese financing
institutions. In accordance with the Strategic Co-operation
Agreement between Prairie and China Coal, the Studies will form the
basis for provision of debt financing for the construction and
development of Jan Karski.
Upon completion of the Studies, Prairie and China Coal will
advance Chinese bank credit approval to fund construction of the
Project and enter into a complete Engineering, Procurement, and
Construction ("EPC") contract under which China Coal will construct
the Jan Karski Mine.
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
To view all images and illustrations in this announcement,
please refer to www.pdz.com.au.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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