WARSAW: PD Co, owned by Australian Prairie Mining has launched arrangements to construct a mine in the neighborhood of the Bogdanka plant (Lubelskie voivodship), Rzeczpospolita daily reported. The company is looking for a financial partner to develop the project, whose value is estimated at PLN 2.5 billion.
PD Co is going to extract 6 million tons of coal, half of it would account for coke and the other half for energetic coal. “The essence of the project is to produce coal cheaply. Thanks to that, it will find its place in the foreign markets without any problems,” Mirosław Taras, PD Co advisor.
The entire investment is to be worth PLN 2.5 billion, the firm had already spent PLN 43 million and is seeking for “financing in the foreign markets,” according to Benjamin Stoikovich, the Australian firm’s CEO. ASX Prairie Mining mulls over entering one of European bourses, it may launch a dual listing on the WSE as well.
Cost of coal extracting in the new plant would be similar to the cost of production in opencast mines. The employment is to reach 2,000 people. Low costs may seem to hinder Bogdanka’s revenues, but experts claim the volume of production would be too low to influence Polish mining market. The Australian investor expects to obtain an exploring license within six months, so the construction would start in 2018.
