Strong Warsaw market following - Prairie continues to receive extensive and positive media coverage as well as a growing following in the Warsaw market
London Office Warsaw Office Registered Office
Unit 1C, 38 Jermyn Street | London | SWY1 6DN Ul. Wspólna 35 lok. 4 | Warsaw | 00-519
Level 9, BGC Centre, 28 Esplanade | Perth | WA | 6000
Email: Website: ABN:
ASX/LSE/WSE:
[email protected] www.pdz.com.au 23 008 677 852 PDZ
GOING FORWARD:
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Advance discussions with strategic partners, project debt providers and offtakers to structure a development financing package for the Jan Karski Mine
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Definitive Feasibility Study to commence after all Project options have been suitably examined and an ultimate "go forward" case has been selected
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Project permitting activities including the ESIA, spatial planning and land acquisition will progress as part of the mining concession application
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Continued development activity across the LCP specifically aimed at improving knowledge of hydrogeological conditions and confirming engineering and design requirements for the shafts
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Progress with the planned railway spur line connection from the Project into the national railway network based on cooperation with Lublin regional authorities
Figure 1: 3D Render of the PFS Mine Site Design
For further information contact:
Ben Stoikovich
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Artur Kluczny
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Chief Executive Officer
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Group Executive - Poland
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+44 207 478 3900
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+48 22 351 73 80
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[email protected]
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JAN KARSKI MINE AT THE LUBLIN COAL PROJECT (Project)
Mining Concession Application & Project Permitting
Prairie Mining Limited (Prairie or Company) is currently working towards completing a mining concession application which in Poland comprises of the submission of a Deposit Development Plan (DDP), an Environmental Social Impact Assessment (ESIA) that is to be approved by regional authorities and approval of a spatial development plan (rezoning of land for mining use). The DDP is a Polish standard mine technical-economic study as prescribed in the Polish mining regulations. Under Polish law, the environmental consent decision has to be obtained prior to the obtaining of the mining concession. The environmental consent decision is issued by a specialised environmental authority (the Regional Director for Environmental Protection).
Deposit Development Plan
During the quarter, the DDP was completed and submitted to local Polish experts for their review and optimisation. The DDP is then expected to be submitted for final review and approval by the relevant government authorities in early 2017.
The DDP is a standard mine technical and economic study as prescribed by Polish mining regulations. The DDP is required to document the proper management and extraction of resources and will be submitted to the relevant Polish government mining authority for their review prior to the grant of a mining concession at the Project.
The DDP includes economic assumptions based on the Project's pre-feasibility study (PFS) published in March 2016 and is required to meet specific Polish geological standards as well as conforming with existing Polish mining regulation requirements.
As part of preparation of the DDP, the final selection of the site for mine surface infrastructure has been formally confirmed and will be used in both the spatial development permitting and the application for the environmental consent decision for the Project.
Environmental and Social Impact Assessment
An application for an environmental consent decision for the Project has been submitted to the Regional Director for Environmental Protection in Lublin along with a Project Information Card, which sets out the environmental procedure and project specific issues of emphasis to be included in the ESIA. The Regional Director of Environmental Protection has now officially initiated the environmental consent procedure.
The ESIA, which is currently progressing, will provide the relevant authorities with sufficient information to award the environmental consent decision. Prairie is currently on track to complete all environmental requirements and submit its ESIA to the regional authorities in late 2016 and expects to receive the Environmental Decision over the Project's mining area in 2017.
The ESIA is an extensive study that includes a wide range of environmental monitoring programs, field surveys, ecosystem sensitivity assessments, socio-economic surveys and a detailed community study and stakeholder engagement plan. The scope of the ESIA has been defined to meet Polish, EU and international standards, including compliance with the Equator Principles to support the future financing of the Project.
Land Rezoning
As part of the PFS and DDP, Prairie finalised the site location for the Jan Karski Mine, which was selected based on geological, mining, transport and commercial considerations. In relation to the site location, a motion for the amendment of local land rezoning has been lodged by the Company with the local commune, which allows for the rezoning of land for the purpose of "deep hard coal mining" and conversion of agriculture land where the surface mine infrastructure will be located to be designated for "industrial use". The commencement of the spatial planning procedure has been initiated following substantial progress in acquiring land for the planned mine site.
In June Prairie submitted a formal application for the inclusion of a spur line, power line and the waste disposal site at the Project to local communes.
Significant government support for the Project continues
During the quarter, Prairie held a conference in Lublin to announce the final site selection for the future Jan Karski Mine at the Lublin Coal Project. During the conference, Prairie presented to local authorities, media and community the progress the Company has made in its Project permitting (refer announcement 25 May 2016), Regional politicians confirmed their support for the Jan Karski Mine, which will be located in the Siedliszcze municipality in the Chelm Shire and has the potential to create a large number of jobs as well as creating significant economic benefits to the regional and national economy. The conference received wide coverage in both local and national media, including major newspapers and television, and was attended by senior Polish and Australian officials.
The support also comes amid a recent Polish Government announcement to unlock the industrial potential of the Lublin Coal Basin, where the Ministry of Development outlined plans to support the development of transport infrastructure and modern installations for coal utilisation. Tagged the "Responsible Development Plan" by Polish Minister of Development and Deputy Prime Minister, Mr Mateusz Morawiecki, he further acknowledged the need for infrastructure development in Eastern Poland. Specific solutions outlined for the region included: