The Sichuan Provincial Investment Group (SCIG) has formally affirmed continuing with UK vitality designer Oracle Power’s joined lignite coal mine and mine-mouth control plant venture, situated in Block VI of the Thar abandon in the south-east of the Sindh area of Pakistan.
The endorsement for the $1.6-billion venture was liable to Oracle getting every single vital endorsement and licenses required by the Chinese and Pakistan governments and palatable due perseverance.
This followed the signing of the memorandum of understanding (MoU) in November last year.
SCIG and PowerChina International Group, Oracle’s project development partner, have conducted their preparatory work on the project and have now agreed to proceed towards completion of a due diligence, which the company believes will be completed in the second quarter.
The parties have entered into a two-stage approach to develop the project and the SCIG board approval is a key step forward as part of the first stage. On completion of the first stage, the next step will be to seek approval from the Chinese government, after which a final development decision will be made to take the project through to financial close.
Given that the project has priority status in the China Pakistan Economic Corridor, the Aim-listed Oracle’s board expects approval by the Chinese government to be given in a timely fashion.