Oracle Coalfields: Oracle Coalfields told coal price for Thar power station

Oracle Coalfields PLC (LON:ORCP) has had the coal price for its thermal power project in Thar in Pakistan set by the regional government. Sindh's Coal and Energy Board has regulated the price at an average US$60.23/tonne over the thirty year life of the mine at production of 4mln tonnes per year. Mine capital costs (including financing costs) were reduced to US$673mln from US$879mln by the regulator. The proposed 70:30 debt to equity financing structure has also been permitted. Shahrukh Khan, Oracle's chief executive, said the regulated coal pricing mechanism that applies to Thar coal isolates the project from the price fluctuations of internationally traded coal. Two weeks ago, Oracle said it had agreed a shareholder framework agreement, whereby "a consortium of new and existing Chinese partners will take 70% equity in its subsidiaries in Pakistan in order to advance the development of the project". Broker Shore Capital; noted that Oracle had been seeking a price of US$76.48/t, though it added that Oracle has said that the tariff determination rules allow for further coal price petitions "as costs change".