Prairie Mining signs deal with Chinese CC5C to expand coal production near Lublin
16:36
Australian coal producer Praire Mining will begin joint operations with China’s second-largest coal company China Coal Number 5 Construction Company (CC5C) after a deal was signed on Wednesday. The two companies will expand coal extraction operations at the Jan Karski Mine in southeastern Poland. The venture will begin in 2023 or 2024. Together, the two companies will complete a feasibility study in mid-2017, before CC5C begins construction of the mine.
The company’s CEO, Ben Stoikovich said “This agreement successfully ties Prairie to one of the world’s largest and most successful coal mine construction firms… (the Chinese company) can speed up the timetable for the construction of the mine.” CC5C accounts for 40 percent of the domestic coal market in China, and the company has completed 340 projects world-wide. Prairie Mining had a net loss of PLN 6.8 million during the year ending June 30, 2016, according to the company’s website. Output is expected to be 6.34 million net tons of coal per year. After 24 years, it is estimated that the coal supply in the mine will be exhausted.
