Prairie Mining joins forces with JSW to unearth Polish coal
Emerging coal producer, Prairie Mining (ASX:PDZ), has announced it has entered into a non-disclosure agreement with Jastrzębska Spółka Węglowa SA (JSW) to progress PDZ’s Polish coal assets.
PDZ is focused on development and operation of the Jan Karski Mine in the Lublin Coal Basin and the Debiensko hard coking coal project in Upper Silesia.
This deal will allow for the exchange of technical and commercial information, with the view to facilitate more advanced discussions regarding future transactions.
PDZ will make information available regarding the hard coking coal project under the Debiensko-1 concession granted in 2008, enabling JSW to conduct an assessment of its feasibility and economics. This will take into consideration factors including: its stage of development, conditions of the mining concession, environmental permits, and the mining usufruct contract.
JSW will also assess other various risks and opportunities, including JSW’s existing infrastructure at the neighbouring Knurów-Szczygłowice mine.
PDZ will also provide JSW with information in relation to the Jan Karski project — here, JSW will conduct another feasibility and economics assessment, looking at a range of factors, including the physical and chemical parameters of the coal, and the timeframe and conditions.
Given that the Polish government strongly supports the development of new, modernised coal mines, this newest development bodes especially favourably for PDZ.
With its prospects located within the heart of industrial Europe with large-scale coal resources and excellent access to infrastructure, PDZ aims to become Europe's lowest cost supplier of premium coal to supply European industry.
However, it is an early stage of this company’s development and if considering this stock for your portfolio you should take all public information into account and seek professional financial advice.