Oracle Power plans to develop Pakistani power plant in single phase

Energy developer Oracle Power has reached an agreement with Beijing Jingneng Power and PowerChina over how best to proceed with its coal mine and mine mouth power plant in the south-eastern Sindh Province of Pakistan.

Based on work completed to date, Oracle and its partners told investors on Wednesday that it had decided to develop the mine in a single phase of 8m tonnes a year, instead of the original and ultimately more capital intensive two-phased approach.

As a result, Oracle now intends to develop the power plant as a single 2x660 megawatt unit and had already submitted an application to the Private Power Infrastructure Board.

The AIM-listed outfit said the required feasibility work relating to the refinements was in the process of being assessed - with a view to determining not only the optimal revised mining plan, but also the most suitable configuration of the mine and power plant to minimise costs.

Chief executive Naheed Memon said: "Progress is being made with our partners as we look to optimise the Project economics and minimise the ultimate capital required for the full development."

As of 0835 BST, Oracle shares had slumped 5.31% to 0.38p.