JSW awaits ministry approval to buy Prairie Mining’s coal assets

20 September 2018 (Last Updated November 19th, 2018 12:07)

Polish state-run coal mining company Jastrzębska Spółka Węglowa (JSW) is reportedly awaiting the Energy Ministry’s nod for the acquisition of Australian explorer Prairie Mining’s coking coal assets in Poland.

Polish state-run coal mining company Jastrzębska Spółka Węglowa (JSW) is reportedly awaiting the Energy Ministry’s nod for the acquisition of coking coal assets from Australian explorer Prairie Mining in Poland.

JSW intends to multiply its coking coal output and is hence pursuing the acquisition of Prairie’s assets, including coking coal projects at the Jan Karski mine and the Debiensko mine, Reuters reported.

JSW chief executive Daniel Ozon was quoted by the news agency as saying: “We maintain that we would like to take over Prairie Mining assets, however we still need to obtain the owner’s approvals, which means that the Energy Ministry opinion is necessary.

“This is why it is unlikely that the whole process of assessing Prairie Mining assets will finish in September.”

Ozon further added that he expects to complete the process next month.

“We maintain that we would like to take over Prairie Mining assets, however we still need to obtain the owner’s approvals.”

Prairie Mining has a reported market capitalisation of A$79m ($57.27m).

Earlier this month, unnamed sources told Reuters that JSW is looking for a controlling stake in the Australian company to strengthen its position as the European Union’s (EU) biggest coking coal miner.

Located in south eastern Poland, the Jan Karski mine has a current coal resource estimate (CRE) of 728 million tonnes across four coal exploration concessions.

JSW and Prairie have been engaged in discussions on cooperation for months now.

Last month, Prairie disclosed that commercial discussions between the parties continue to be at a preliminary stage.