Prairie Mining and China Coal, the second largest coal mining company in China and one of the world’s most advanced and prolific shaft sinking and total underground coal mine construction companies, have signed a landmark strategic co-operation agreement to advance the financing and construction of Prairie’s Jan Karski mine (JKM project) in Poland.
China Coal No.5 Construction Co. Ltd (CC5C) and Prairie intend to enter into a full ‘wraparound’ EPC contract, which will see CC5C construct the JKM project and procure a debt financing package to fund the development of the project.
CC5C and Prairie, together with the Chinese government’s authorised mine design institute, intend to complete a bankable feasibility study by mid-2017, which will provide the basis for an EPC contract and a construction-funding package for the mine.
Deputy General Manager of CC5C, Sang Hua said, “The Jan Karski mine is managed by a highly experienced team in Prairie Mining and, with CC5C’s shaft sinking and coal mine construction expertise, will no doubt be developed into a world class coal mine. We are excited to have entered into this co-operation agreement with Prairie Mining and see the Jan Karski mine as a flagship overseas development project for China Coal as part of our strategy to increase China Coal’s international presence as a major mine development contractor.”
A senior delegation from CC5C recently conducted a site visit to the JKM project, which included meetings with regional officials and potential Polish sub-contractors and suppliers.
Prairie Mining’s CEO Ben Stoikovich commented: “Prairie’s team has visited many of China Coal’s mine construction projects and operating coal mines, and it is clear that China Coal are world leaders in mining technology and mine construction. They have extremely high engineering, productivity and safety standards that rival the very best Australian and US longwall coal mines. CC5C’s expertise, particularly in shaft sinking, has the potential to significantly accelerate the construction schedule of the Jan Karski Mine. Of equal importance is the potential for this transaction to unlock significant financing for the Project from Chinese banks who have a track record of supporting major EPC-led international contracts.”
Prairie will work with a range of Polish mining and engineering specialists, alongside CC5C, to ensure all design and construction conforms to Polish regulations and safety standards.
Prairie’s and CC5C’s agreement demonstrates the increasing economic collaboration between Poland and China following China’s proposed “One Belt, One Road” development strategy and highlights Poland’s importance as a “One Belt Economy” for accessing key European markets.
Prairie Mining Group Executive and former Head of the Secretariat of the Polish Prime Minister’s Office, Artur Kluczny, said “The Government’s economic policy for Poland recognises coal as a pillar of energy security, and calls for the re-industrialisation of the domestic economy. New investment in state of the art and highly efficient new coal mines will boost the mining sector and see Poland’s renaissance as a significant coal exporter. By co-operating with China Coal we contribute to establishing new trade and investment links with China which is also seen as a strategic option for the country. Prairie Mining will be integrating Polish experts with the CC5C team to ensure that all local regulatory requirements are met. We are looking forward to seeing CC5C establish their European operating base in Poland.”
Read the article online at: https://www.globalminingreview.com/exploration-development/02112016/prairie-and-china-coal-advancing-jan-karski-coal-mine-together/