Prairie Mining's shares rise after encouraging Debiensko Mine update

Shares in Prairie Mining rose almost 8% after a scoping study indicated its Debiensko Mine was potentially a large-scale, lowest-cost and long-life premium hard-coking coal supplier.

The study had confirmed Debiensko's potential as a Tier 1 premium hard coking coal asset by virtue of the significant potential production scale and resource size, exceptionally low estimated cash costs and low capital intensity of the mine, said Prairie.

It found the mind had potential to deliver 2.6 million tonnes a year of premium quality hard coking coal at US$47 per tonne placing it right near the bottom of the global cost curve.

The study, which focused on the near-term development of highly profitable coal seams at low capital and operating costs, added Debiensko's rail, road, power, water and other mine infrastructure made the project beneficial.

"The project has one of the potential lowest capital intensities for a new hard coking coal mine and is fully permitted for development."

At 10:40 GMT, shares in Prairie were up 7.9% to 41p each.