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Coal|Construction|Environment|Mining|PROJECT|Projects|Environmental
Coal|Construction|Environment|Mining|PROJECT|Projects|Environmental
coal|construction|environment|mining|project|projects|environmental

Aussie coal junior claims discrimination in Poland

18th January 2019

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Australia-headquartered Prairie Mining, which focuses on coal projects in Poland, said on Friday that, as a foreign investor, it faced discriminatory treated in Poland, as its tussle with the Ministry of Environment (MoE) over the Debiensko mining concession dragged on.

The company has applied for a 50-year amendment of the Debiensko hard coking coal project’s concession to extend the time stipulated for first production of coal from 2018, to 2025, a request that the MoE has denied with a final “second instance” decision.

This decision may result in proceedings by the MoE to limit or withdraw the Debiensko concession, Prairie said.

The company, however, is of the opinion that failing to meet the production timeframe stipulated in the concession does not automatically infringe on the validity and expiry date of the concession, which is June 2058. It also states that it has a valid environmental consent decision enabling mine construction and that it continues to have a valid tenure and ownership of land. 

“Preliminary llegal advice obtained by Prairie indicates that the MoE's decision is fundamentally flawed, fails to comply with Polish, European Union and international law, and demonstrates yet further evidence of the discriminatory treatment faced by Prairie as a foreign investor in Poland,” the London- and Sydney-listed company said.

However, Prairie did receive good news regarding its Jan Karski mine, also in Poland, with the Supreme Administrative Court affirming its rights to the project and obliging the Ministry of Environment (MoE) to approve a resource estimate for the K-6-7 deposit.

The court ruling shut down Lubelski Wegiel Bogdanka’s 2013 application for a mining concession over the K-6-7 deposit at Jan Karski, as its ruling is final and cannot be appealed. The ruling concluded that granting a mining concession to Bogdanka would be a violation of the provisions of the country’s mining law.

In the second ruling, the court also upheld a 2016 court decision that obliged the MoE to approve Prairie’s submitted addendum no 3 for the K-6-7 deposit, which sets out a detailed resource estimate.

The MoE is obliged to reassess the original decision, Prairie said, noting that the Supreme Administrative Court’s decision demonstrated that the MoE had acted illegally and failed to correctly implement Poland’s mining laws.

 

Edited by Creamer Media Reporter

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