Oracle Coalfields ORCP Oracle signs MOU with Thatta for coal supply

  Oracle Coalfields (ORCP) - Oracle signs MOU with Thatta for coal supply

RNS Number : 5973Q
Oracle Coalfields PLC
08 November 2012




08 November 2012

                            Oracle Coalfields PLC

                         ("Oracle" or "The Company")

             Oracle signs MOU with Thatta Cement for coal 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 Memorandum of Understanding ("MOU")  with 
Thatta Cement Company Limited ("Thatta") for the proposed supply of coal  from 
the mine that Oracle is developing in Block VI of the Thar Coalfield.

The MOU, which is between Oracle's  80 per cent owned subsidiary Sindh  Carbon 
Energy Limited  and Thatta,  will see  Oracle supply  dried coal  to  Thatta's 
cement works.  Further,  the  representatives  of parties  will  meet  at  an 
appropriate time mutually agreed between them to sign a Coal Supply  Agreement 
and agree, inter alia,  the specifications, quantity and  price of coal to  be 
supplied.

Thatta, which is part of the Arif Habib Group, one of Pakistan's most renowned
business groups, is listed on the Karachi Stock Exchange. The group has a
diversified blend of expertise and interests in various industrial and
financial concerns, including fertiliser, steel, cement, real estate,
commercial banking, assets management, securities brokerage and private
equity.

The MOU supplements the Memorandum of Understanding signed earlier with  Lucky 
Cement Limited, a major cement  manufacturer in Pakistan, and provides  Oracle 
with the option of increasing production volumes, in the medium to  long-term, 
at its project to supply pre-sourced demand from Pakistan's cement industry.

Shahrukh Khan, CEO of Oracle, said:

"This agreement is a  further indication of the  support that our project  has 
from industry in Pakistan.  The MOUs with Thatta  and Lucky Cement,  alongside 
the Joint  Development  Agreement  that  we  signed  previously  with  Karachi 
Electric Supply Company, provide us with a sustainable market for our  product 
and marks  a further,  important step  forward  in our  efforts to  bring  our 
project into production.

"The Implementation  Plan that  we  announced in  September this  year,  which 
detailed reduced  investment and  production costs,  confirmed the  commercial 
viability of our project.  We continue to make  progress towards our  ultimate 
goal of delivering a producing coal mine that will help to resolve  Pakistan's 
energy crisis while  simultaneously delivering  long-term sustainable  returns 
for our loyal shareholder base.

"We will be adopting a phased approach in terms of production and our  current 
focus is  now firmly  on securing  the project  finance for  development  work 
required to bring the project into phase 1 of production."

                                     Ends

For further information:

Oracle Coalfields PLC

Shahrukh Khan,
CEO+44
(0) 20 7317 4050



Blythe Weigh Communications

Tim Blythe / Paul Weigh / Robert Kellner
 +44 (0) 20 7138 3204



Seymour Pierce (Nominated Adviser & Joint Broker)

Stewart Dickson / Julian Erleigh (Corporate Finance) +44
(0) 20 7107 8000

Richard Redmayne / Jacqui Briscoe (Corporate Broking)



Novus Capital Markets (Joint Broker)

Denis Christie, Charles
Goodfellow  +44 (0) 20 7107
1881

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


STRUBRBRUVAARAA -0- Nov/08/2012 07:00 GMT
 
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