Developing Pakistan's First Large Scale Open Pit Coal Mine


Oracle Coalfields is an AIM listed (AIM:ORCP) lignite coal explorer and developer of a 1.4 billion tonne JORC resource deposit, with 371 million tonnes in the proven reserve category. The company’s primary interest is the Thar Coalfield Block VI license area located in the Sindh Province, South Eastern Pakistan

Oracle Coalfields is a UK based company with coal projects in Pakistan. The Directors identified and are now developing Block VI of the Thar Coalfields asset with initial production targeted for 2013. The Company’s Directors will continue to evaluate global opportunities for investment which have the potential to increase shareholder value, as well as identifying strategic partnerships for coal mining and production.

The company signed Memorandums of Understanding (MOU) for an offtake of its coal, with both Karachi Electricity Company (KESC) and Lucky Cement. KESC is a public listed power company which intends to build a power plant(s) at the mouth of the Block VI Thar Coalfield in order to address the power cuts and load shedding in Pakistan. Lucky Cement is a public listed major cement producer in Pakistan.



July 2006, Oracle Coalfields engaged Dargo Associates Limited, an international coal consultancy based in the UK, to assist with its investigation of prospective areas of interest and to evaluate coal prospects in the Sindh Province.

In 2007, Oracle Coalfields’ 80% owned subsidiary, Sindh Carbon Energy Limited, was granted two licences for coal development by the Sindh Coal Authority and Mines and Minerals Development, Government of Sindh. The first licence, Indus East, was granted on 8th February, 2007, and the license for Block VI of the Thar Coalfield, was granted on 14th November, 2007. Sindh Carbon Energy Limited’s, primary focus is the development of Block VI of the Thar Coalfield. The Indus license is currently held in abeyance as the company focuses on Thar Coalfield Project.

Oracle Coalfields listed on the PLUS Markets primary exchange in August 2007 following a placing with three cornerstone investors. In order to aid liquidity, additional fundraising was completed in September 2007 and June 2008.

The first licence granted, Indus East, covers 100 square kilometres of semi-arid land. The work programme at Indus East commenced in early November 2007. The second licence granted, Block VI of the Thar Coalfield, covers 66.1 square kilometers. Oracle Coalfields completed further drilling to take the project to JORC standard 1.4billion tonne resource with 371million tonnes proven reserve.

In December 2009 Oracle Coalfields signed Memorandums of Understanding (MOU) for an offtake of its coal, with both Karachi Electricity Company (KESC) and Lucky Cement. KESC is a public listed power company which intends to build a power plant(s) at the mouth of the Block VI Thar Coalfield in order to address the power cuts and load shedding in Pakistan. Lucky Cement is a public listed major cement producer in Pakistan.

Project Timeline
1.Successful AIM listing
2.Strengthen management team
3.Progress on the Thar Coalfield Block VI to:
DFS in 3rd quarter 2011 followed by BFS
4.Project Finance to be completed by H1 2012
5.Mine Development H2 2012
6.First Production 2013





Volume: 3,442 pcs.

Market Cap: GBP 14.73M


http://www.oraclecoalfields.com/index.php

"

Oracle confirms AIM move



story here

http://www.proactiveinvestors.co.uk/LON:RGM/Regency-Mines/#youtube_991

also of Interest

JANUARY 19, 2012 RECORDER REPORT 0 COMMENTS
The most ambitious energy project of the country seems to have finally caught the attention of the major global players in the industry.

According to a news report, a consortium of US-based lignite mining giants has offered to invest dollar 10 billion in a large energy complex in Thar to produce 6,000 MW of coal-based power and introduce in Pakistan the concept of gasification and production of liquid fuel from coal.

The consortium at present is holding talks with the Pakistan authorities, including the Board of Investment, and seeks to tap a portion of the total reserves with time-saving technologies in the complicated lignite mining operation.

TharPak, L.L.C., which was set up to organise and lead the consortium believes that the mining operations would eventually have a production capacity of over 100 million tons per year to feed 80,000 barrels a day of direct coal to liquids plant.

The project would be completed in three phases and expected to generate 2,000 MW of electricity in the first phase, which could be increased to 6,000 MW by the last phase.

It was also revealed that the consortium comprises Evan Energy, Marshall Miller and Associates and Advanced Resources International.

As is widely well-known, Evan Energy is a leading international energy investment and consulting firm focusing on coal and related industry while Marshall Miller and Associates is a diverse consulting and engineering firm offering a wide spectrum of services in North and South America and Europe.

Advance Resources International is also internationally recognised for its research and consulting services relating to unconventional gas, enhanced oil recovery etc.

In addition, TharPak has secured the assistance of two internationally reputed research universities namely, the Virginia Centre for Coal and Energy Research and West Virginia University's National Research Centre for Coal and Energy, for training the local workforce.

At a time when the country is starved of energy and foreign investment in almost all areas of the economy has dried up due to obvious reasons, the investment prospects of such a magnitude by internationally recognised firms in this particular sector carry a great deal of significance.

This is so because in Pakistan's case, growth potential does not only seem to have hit a ceiling imposed by insufficient energy supply but has also impacted negatively on all other areas of the economy including job creation and the overall quality of life.

While energy demand has increased markedly during the last decade or so, supply has failed to match the growing demand due to policy failures with respect to setting up of viable new power projects, increasing exploration of natural gas, crude oil and coal, tapping regional markets and incentivising development of renewable energy sources.

One indication of this distressing situation is the rising "peak electricity load management" in the country which has jumped from 2,645 MW in FY07 to 6,151 MW in FY11 or from 16.7 percent of total demand to 33.2 percent in the same period.

Since modern production processes are heavily dependent on uninterrupted supply of energy, it is imperative for Pakistan to accord top priority to this sector for sustainable growth and the avoidance of social chaos and anarchy in the country.

However, while recognising the urgent need to augment energy supplies, it must be admitted that the public sector's ability to finance projects in this area is constrained by low tax revenues and the private sector is handicapped due to a variety of factors including a dismal rate of savings.

Against this background, the only ray of hope could be foreign funding along with the infusion of necessary technology and the ability to take high risks which are inevitable in such projects

of Interest

China plans to invest $10 billion in Pakistan’s energy sector

KARACHI: China’s state-owned Three Gorges Corp. plans to invest $10 billion by 2018 in Pakistan’s energy sector and a delegation is scheduled to visit Pakistan on February 7, officials said on Friday.

The Hong Kong-based United Energy Group Limited of China also intends to establish a 2,000 megawatts power project in Sindh as their delegation is also visiting Pakistan next month to hold further talks on setting up the power projects, they said.

Sindh Coal and Energy Department has signed memorandums of understating (MoU) with the two companies, which have shown interest in developing coal-fired power plants in Thar and Badin coal fields, as well, the officials said.

In an attempt to resolve the issue, the government is pinning hopes on Thar Underground Coal Gasification (UCG) pilot project, which contains the country’s largest coal deposits of around 850 trillion cubic feet spanning over 3,800 square miles, they said.

Overall, according to the World Energy Council, Pakistan has slightly more than 2,000 million tons of proven recoverable coal reserves.

Pakistan’s current electricity demand is around 25,000 megawatts per day, but the current electrical production is less than 20,000 megawatts per day, leaving a deficit of slightly more than 5,000 megawatts, and by 2015, domestic demand is projected to rise to 30,000 megawatts per day.

Currently, the country depends on oil and natural gas to generate up to 60 percent of its electricity needs, further impacting the country’s balance of payments as the price of oil rises and the ongoing power shortages are beginning to impact the country’s bottom-line exports, the officials said.

Member of the Science and Technology Planning Commission, Dr Samar Mubarakmand, has said that Thar coal project would be beneficial for common people and free from all defects.

The success of the Thar coal project would lead to investment from leading international companies, he said.

With the completion of coal-fired power generation project, the nation would get cheap and sufficient power supply, which would resolve the current energy crisis, he added.

Mubarakmand said that the country had enough coal reserves through which it could daily produce 50-60 million cubic feet gasifier, which would end gas shortage from the country.

It is for the first time that the coal gasification is being launched on commercial basis, which will help in abundant and cheap electricity

http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=89763&Cat=3

of interest

Pakistani Scientists success in producing natural gas from Thar coal

Thar coal power generation project has completed successfully Dr Samar Mubarakmand said on Wednesday., Talking to a private news channel, he said that the chairman of the project, Dr Samar Mubarakmand and his team successfully converted underground Thar coal in Tharparkar into coal gas. Thar project would start producing 100MW electricity, its capacity would be gradually increased it will produce electricity at Rs2 per unit.

The team of Dr Samar has achieved a great success in producing natural gas from under ground coal gasification technology in Thar coal Block 5.

Dr Mubarak said, coal was burnt at about 250 feet underground on December 11, on December 19 scientist successfully found the gas at Islam kot area of Thar.

He further added that, This project can generate 10,000 megawatts electricity for 30 years and can produce 100million barrel diesel per year.

He said that the project is to cost Rs8.898 billion with a foreign exchange component of Rs 5.847 billion that was approved by the Executive Committee of the National Economic Council last year.

Dr Mubarakmand said that the success of the Thar coal project will lead to investment from the leading international companies.With the completion of coal-fired power generation project, the nation would get cheap and sufficient power supply thus resolving the current pestering energy crisis, he added.

Dr. Samar said it is for the first time in Pakistan that the coal gasification is being launched on commercial basis and abundant and cheap electricity will be available.He said the coal gasification was already producing 50000MW around the world, as the cost of electricity per unit is relatively low.He said the four continents in the world are working on this project, as this method has enhanced energy efficiency reaching to 76 per cent.He said the new growth strategy of the country is being emphasised on power generation through coal.

Underground Coal Gasification (UCG) is the process by which coal is converted in situ into a combustible gas that can be used as a fuel or chemical feedstock. It is a process to convert unminable underground coal/lignite into combustible gases (i.e., combustible syngas – a combination of hydrogen and carbon monoxide) by gasifying. UCG uses a similar process to surface gasification.

http://web.orange.co.uk/article/news/power_shortages_crippling_pakistan_s_economy

6 February 2012

Oracle Coalfields PLC

("Oracle" or the "Company")

Technical Feasibility Study

Oracle Coalfields PLC (AIM:ORCP), the coal explorer and developer of a lignite mineral property located in the south-eastern desert of Sindh Province, Pakistan, today announces the results of the technical feasibility study ("FS") on Block VI of the Thar Coalfield.



The exploration licence for Block VI (NO.DMD/S/Ex-L-Coal (11)/10/2914) with an area of 66.1km2 ("Licence Area") is held by Oracle's 80 per cent owned subsidiary, Sindh Carbon Energy Limited ("Sindh Carbon"), a private company incorporated in Sindh Province, Pakistan. On 2November 2011 Sindh Carbon submitted an application for the conversion of the current exploration licence to a mining licence.



Highlights from the FS:



• Within the Licence Area there are Mineral Resources (reported in accordance with the terms and definitions of the JORC Code - defined below) in the mining area (approximately 20 square kilometres) of 529 millions of wet tonnes (Mwt) with gross calorific value (CV) of 3,182k calories per wet kilogramme (wkg), with ash content at 5.89 per cent and Sulphur at 0.91 per cent.

• Probable Coal Reserves (Phase 1 of Mining Area) of 113Mwt with gross CV 2,831kcal/wkg, Ash 11.50 per cent and Sulphur 0.79 per cent with a strip ratio of 8.54bcm waste (Bank Cubic Metre):1wt lignite.

• Total capital expenditure for open cast mine development is estimated at US$610m (including US$224m for mining equipment) for 5Mwt per annum of lignite production.

• Total cash cost of production of US$42.21 per wet tonne.

• Confirmed product quality suitable for power generation.

• 23 year mine life.



Shahrukh Khan, CEO of Oracle, said:



"This is another important step for Oracle as we look to provide a sustainable source of energy to Pakistan and bring its first large scale open-pit coal mine into production. The FS indicates the technical and economic viability of the mining project.



"Further work is continuing to refine the overall project economics, specifically in respect of off-take agreements with respect to the Power Plant (defined below); and the mining contractor opportunities, prior to making any definitive announcements on the overall economics. The Government of Sindh in recent published announcements recognises a Project IRR in excess of 20 per cent assuming completion of certain financing milestones.



"The Board looks forward to progressing the technical feasibility study to bankable standard ("BFS") in 2012, when we will also be seeking direct funding for the mining project."



The FS is targeting the development of a lignite mining operation (the "Lignite Mining Project", "LMP") to supply a mine-site power station with an annual mine production target of 5Mwt (47.80 per cent moisture) of lignite at an overall stripping ratio of 8.54bcm to one wet tonne lignite and a total mine-site production cost of US$42.21 per wet tonne of lignite (47.80per cent moisture) delivered over an expected mine life of 23 years.



The total mine site capital expenditure for construction and development to full production is US$610m with an expected construction period of 27 months. The current FS defines sufficient coal reserves to support a 23 year mine life, defined as Phase 1.



The FS was compiled by SRK Consulting (UK) Limited ("SRK") with certain of the underlying technical disciplines (Geology; Mineral Resources and Ore Reserves; Mining Engineering; Hydrogeology - mine site; Geochemistry; and Financial Modelling) authored by SRK directly and others, whilst reviewed by SRK, authored as follows: Environmental and Social Studies by Wardell Armstrong LLP and Hagler Bailey Pakistan (Pvt) Limited; Hydrogeology- semi regional ground water by RPS Aqua Terra (Pty) Limited; Infrastructure by WSP Group plc.



Where appropriate, local consultants were also employed to complete certain tasks, under the supervision of the above named consultancies. The specific scope of the FS was limited to the mine site and specifically excludes any consideration for the development, construction and operation of the Power Generation Plant Project ("Power Plant").



Further work is required to progress this Feasibility Study to a bankable standard ("BFS"). The environmental work completed to date has targeted compliance with both local regulatory requirements and international standards (specifically: Equator Principles, IFC Performance Standards, World Bank EHS Guidelines and ICMM guidelines).



Although further work is required, the economic viability of the LMP is dependent upon various assumptions in respect of the Power Plant which are not yet supported by a BFS.



The reporting standard adopted for the reporting of the Mineral Resource and Ore Reserve Statements for the LMP is that defined by the terms and definitions given in "The 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the "JORC Code") as published by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia". The JORC Code is an internationally recognised reporting code as defined by the Combined Reserves International Reporting Standards Committee.

UK firm to invest $610m in Thar coal
14 February, 2012

KARACHI: The UK firm Oracle Coalfields is set to invest $610 million to develop an open pit coal mine in Thar, according to its CEO Shah Rukh Khan.


Budget to be passed in June, debated in May: Hafeez Shaikh
Nepra refuses to shift debt swap deal burden to consumers
Increase in gas tariff by Rs8.87-13.16
Iran ready to inject 1,000MW power in Pak transmission line
Cabinet rejects summary of negative trade list with India
FBR enhances FED on air travel services
3G licences auction will be a test for mobile operators


KARACHI: The UK firm Oracle Coalfields is set to invest $610 million to develop an open pit coal mine in Thar, according to its CEO Shah Rukh Khan. The project is expected to produce five million tons of coal, which will fuel a planned 300 megawatt (MW) power plant for the Karachi Electric Supply Company (KESC), he said. He was addressing a press conference along with the secretary of the Sindh Board of Investment and the Coal and Energy Development Department, Mohammad Younus Dagha, on Monday.

Khan said that the equity portion of financing for the project is ready, while the debts will be financed from outside. A lot of lenders had shown keen interest and were amenable to loaning money for the project because the KESC, which will buy all output from the mine, is a trustworthy company, he added. Referring to a feasibility study Oracle recently concluded, Khan remarked that the report had underlined the technical and economical viability of the project itself as well.

He said that Oracle had signed a memorandum of understanding with the KESC to develop a 300 MW mine-mouth power plant at the site. Khan said that the company was also undertaking a comprehensive environment and social impact assessment in compliance with both local and international regulatory requirements.

Speaking on the occasion, Dagha said that the mine has been leased for 30 years, extendable for more if needed. Responding to a question, he said that the first project cycle for the installation of a transmission line between Thar and Matiari has been completed and will cost Rs20 billion. To another question, he said that electricity from coal will cost 10 to 11 cents per unit, compared to oil-fired power plants that produce at 22 to 25 cents per unit.

Khan expects initial development work to be initiated by late 2012 and the mine to be in production by 2014.

End.

http://paktribune.com/business/news/UK-firm-to-invest-610m-in-Thar-coal-9494.html

Oracle Coalfields CEO talks about the move from exploration to development

http://www.stocktube.com/video/oracle-coalfields-ceo-talks-about-the-move-from-exploration-to-development

Thanks Driver ;- ))

Pakistan declared Thar Coal field special economic zone, fiscal incentives approved for 30 years

http://www.thenewstribe.com/2012/04/06/pakistan-declared-thar-coal-field-special-economic-zone-fiscal-incentives-approved-for-30-years/?__utma=159696636.2114248795.1331852211.1333433392.1333731772.3&__utmb=159696636.2.10.1333731772&__utmc=159696636&__utmx=-&__utmz=159696636.1333731772.3.2.utmcsr=uk.advfn.com|utmccn=%28referral%29|utmcmd=referral|utmcct=/cmn/fbb/thread.php3&__utmv=-&__utmk=52426473#.T4HNqYFLee6

26 June 2012

Oracle Coalfields PLC

("Oracle" or "the Company")

Oracle signs Joint Development Agreement with Karachi Electric Supply Company

for long-term Coal and Water supply

Oracle Coalfields PLC (AIM:ORCP), the UK coal developer of a lignite mineral property located in the south-eastern desert of the Sindh Province, Pakistan, today announces that it has signed a Joint Development Agreement ("JDA") with Karachi Electric Supply Company Limited ("KESC"), through its 80 per cent owned subsidiary Sindh Carbon Energy Limited ("SCEL"), which will see SCEL provide KESC with a long-term supply of coal and water. This agreement supersedes the MoU signed between the respective parties on 12 December 2009.

The coal and water will be used initially by a 300 MW coal-fired power plant (with potential to be increased to 1,100 MW) which will be constructed by KESC adjacent to Oracle's planned coal mine in Block VI of the Thar Coalfield in Pakistan, in an area that will be sub-let by SCEL to KESC as part of the JDA agreement.

Shahrukh Khan, CEO of Oracle, said:

"This is a hugely positive step in the development of Oracle's project in the Sindh Province in Pakistan. It follows shortly after the Mining Lease that the Company was granted on 12 April 2012, and represents significant progress towards our goal of becoming a major coal producer in Pakistan.

"The agreement with KESC brings security in the form of a major purchaser for our product."

SCEL reserves the right, under the terms of the JDA, to enter into discussions with any other third party for the supply of coal, provided that any agreements entered do not affect SCEL obligations to KESC under the JDA.

Audio interview with Shahrukh Khan, Chief Executive Officer of Oracle Coalfields CEO discusses the progress they have made with the That resource, the potential market of the Pakistan Energy Sector and the agreements signed with large established consumers of coal including Karachi Electric Supply, Lucky Cement and announced today Thatta Cement.

Click the link below to listen

http://www.brrmedia.co.uk/event/106560/shahrukh-khan-chief-executive-officer

Oracle recovering nicely from recent lows and 1.5 placing 22% up today not bad..

Shahrukh Khan, Chief Executive Officer discusses Oracle has now put in place the building blocks for project implementation and is in active discussions with potential strategic partners, developers and potential contractors to develop both the mine and a mine mouth power plant with support of the Provincial and National Governments.

CLICK HERE TO LISTEN

Watch: Shahrukh Khan, CEO, Oracle Coalfields - Corporate update

Click here

Oracle Coalfields - The 102nd @Minesitenews Forum

Click here