Prairie Mining Ltd
(ASX:PDZ) has signed a deal with China’s second largest coal mining company, China Coal.
The two companies entered a strategic co-operation agreement to advance the financing and construction of the Jan Karski coal mine in Poland.
Under this deal, Prairie and China Coal intend to complete a Bankable Feasibility Study by mid-next year, which will form the basis of Chinese credit approval for banking finance.
Prairie says, based on the results of the Feasibility Study, the parties’ intentions are to to enter a complete Engineering, Procurement and Construction contract under which China Coal will construct the Polish mine.
Prairie Mining reported a net loss of $6.8 million at 30 June 2016.
