Oracle Coalfields plunges after subsidiary has mining lease cancelled
Coal firm Oracle Coalfields said its subsidiary, Sindh Carbon Energy, has lost one of its mining leases for a site on the Thar coalfield in Pakistan.
FTSE AIM All-Share
754.69
16:50 24/04/24
Oracle Power
0.03p
16:55 24/04/24
The firm added it will appeal the decision, which, it said, was made "without legal foundation".
Sindh received notification of cancellation of its lease from the Coal Mines Department of the Sindh government.
"The company advises that, in its view and in the view of its lawyers, this cancellation is without legal foundation [...]The company is taking steps through all relevant channels to have this notification withdrawn," Oracle said in a statement.
Shahrukh Khan, the group chief executive, said Oracle considered the decision “unexpected” but remained committed to developing the project.
"Whilst this is an unexpected and arbitrary decision, on the basis of our substantive and detailed appeal I expect a constructive dialogue with the authorities leading to withdrawal of the notification of the cancellation of the mining lease,” he said.
“Oracle remains fully committed to the development of our Block VI of the Thar coal project.”
As of 12:35 on Thursday, Oracle shares had plunged 47.66% to 0.61p.