Oracle Coalfields's project upgraded by China, Pakistan

9th Jan 2017 08:21

(ShareCast News) - The Pakistani government has told Oracle Coalfields, a developer of lignite mineral resource, that its position in the China-Pakistan Economic Corridor has been elevated to the 'priority list', which should position the company's power plant project on a fast-track for approval of debt funding by the Chinese government.The China-Pakistan Economic Corridor is a series of infrastructure projects that aims to enable trade along the route connecting Kashgar, a city in Xinjiang, and Gwadar, a port city on the coast of Balochistan, as well as deepen economic ties between the two countries.The sixth meeting of the joint co-operation committee of the corridor confirmed that Oracle's block six coal project, in the Thar desert in the south-east of Sindh Province, had been elevated to the 'priority list'.Through the economic corridor, China's banks are aiming aim to finance Chinese companies investing in projects under the deal as commercial ventures and help to operate the projects as profit making entities.AIM-listed Oracle said that the total financing made available to companies under the corridor increased to around $50bn, while the debt component of Oracle's Thar project is anticipated to be around $1bn.Shahrukh Khan, chief executive of Oracle, said: "Our elevation in the China-Pakistan Economic Corridor affirms the support that the governments of China and Pakistan are giving to our integrated coal mine and power plant project. We are delighted by this development, which should fast-track the funding of our project."Shares in Oracle Coalfields were up 4.54% to 2.88p at 1035 GMT.