ValueTheMarkets Logo
Stock Market Review for the Retail Investor
Features

Prairie Mining secures major Polish coking coal project following courtroom battle (PDZ)

25 Apr 2018 | by: Patricia Miller

Prairie Mining shot up today after announcing that a civil court has ruled in its favour in legal proceedings against Poland’s Ministry of Environment to protect security of tenure over its Jan Karski coking coal project.

In July 2015, Prairie secured the exclusive right to apply for a mining concession at Jan Karski, subject to receiving approval for development plans and securing an environmental consent decision by 2 April 2018. Due to a delay in the issue of an environmental consent decision, Prairie was not able to meet this deadline.

However, the right grants Prairie the legal ability to apply for a ‘mining usufruct agreement’ for an additional 12-month period of exclusivity beyond April 2018. The firm applied for this agreement in December last year and, under Polish law, the Ministry of Environment (MoE) is obligated to grant the extension within three months of application. As the MoE failed to give this extension, Prairie began legal proceedings against the government body to protect its security of tenure over Jan Karski earlier this month, sending shares down by 28.6pc in the process.

However, shares were up 13.1pc, or 4p, to 34.5p today after Prairie said the Polish Civil Court has ruled that the MoE cannot grant licences to or make agreements with any other party until court proceedings have finished. According to Prairie, this decision provides security of tenure over the Jan Karski concessions and safeguards its rights at the project.

Furthermore, the Lublin regional director for the environment has declared that the process to establish an environmental consent decision for Jan Karski will be concluded by 30 June this year. The decision paves the way for Prairie’s submission of a mining concession application.

Jan Karski is a large scale semi-soft coking coal project located in the Lublin Coal Basin in south-east Poland. It is situated adjacent to the Bogdanka coal mine, which has been in commercial production since 1982 and is the lowest cost hard coal producer in Europe. According to Prairie, Jan Karski has the potential to produce a high-value ultra-low ash semi-soft coking coal with a coking coal product split of up to 75pc.

Prairie’s other coal project is the Debiensko Mine, a hard-coking coal project located in the Upper Silesian Coal Basin in the south west of the Republic of Poland.

Author: Daniel Flynn

Disclosure: The author of this piece does not own shares in the company mentioned

Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

    RNS Responses

    Bieber and BTS label HYBE invests in AI

    Big Hit Entertainment, now HYBE is heavily investing in Artificial Intelligence (AI) and strategic collaborations disrupting the entertainment industry.

    Could Stripe IPO at $100 billion?

    Stripe’s success is getting investors excited at the prospect of a $100 billion IPO. Will this fintech company become a hot growth stock for 2021?