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Australian Prairie to debut on Warsaw bourse in coming days

Published 01/09/2015, 11:33 pm
Updated 01/09/2015, 11:37 pm
Australian Prairie to debut on Warsaw bourse in coming days
GRX
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WARSAW, Sept 1 (Reuters) - Australian coal company Prairie Mining PDZ.AX will debut on the Warsaw bourse WSE.WA in the coming days, it said on Tuesday.

Prairie, already listed in Australia, plans to build a $684 million coal mine in south-east Poland, which the company says will boast the lowest hard-coal production costs in Europe.

The company wants to build a mine at a time when slumping prices and high production costs have pushed Polish miners to the brink of bankruptcy.

Prairie Mining is betting a rebound in coal prices will be in place when the mine nears completion. Local reports say this could be around 2020.

Prairie Mining, which has not given a date for completing the mine, sees its coal output in Poland at 6 million tonnes, which some experts say equals Poland's current coal surplus.

The company has secured up to A$83 million from UK private equity fund CD Capital to finance the mining project, for which it was granted exploration concessions by the government in 2012.

This means the company will not need to raise new capital from public markets when it debuts on the Warsaw and London stock exchanges.

The Australian firm is competing for a mining concession in the area with Poland's Bogdanka, whose coal mines are nearby.

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