Prairie Mining launches arbitration proceedings against Poland

Australian exploration company, Prairie Mining, announced that it has initiated international arbitration proceedings against Poland and is seeking damages.

"Following the announcement in July that the company had secured AU$18 million to finance litigation, the company's filing of arbitration notices is the next step in seeking damages following the actions and omissions of the Republic of Poland that prevented Prairie from developing world-class Jan Karski and Dębieńsko coking coal projects. We had no choice but to take such action and enforce the company's rights to regain full shareholder value through international arbitration," Prairie Mining CEO Ben Stoikovich said.

In Prairie's opinion, Poland breached its obligations under the existing treaties by acting to block the development of the Jan Karski and Dębieńsko mines, which was to effectively deprive Prairie of the entire value of its investment in Poland.

The claim for compensation is to concern, inter alia, the historical value of Prairie's expenditure on the development of the Jan Karski and Dębieńsko mines, lost profits and damages incurred as a result of actions and omissions that led to the expropriation of both mines, and accrued interest related to the damages awarded and all costs related to the pursuit of arbitration claims.Still, Australians cannot comment on the potential claim amount at this stage

(PAP)