Prairie Mining Limited Prairie Files GBP806 million Statement of Claim (2526B)
June 09 2021 - 2:00AM
UK Regulatory
TIDMPDZ
RNS Number : 2526B
Prairie Mining Limited
09 June 2021
PRAIRIE MINING LIMITED
NEWS RELEASE | 9 June 2021
Prairie Files GBP806 million (equivalent to A$1.5 billion/PLN4.2
billion) Statement of Claim for Compensation Against Poland
As part of the ongoing international arbitration claims (Claim)
against the Republic of Poland under both the Energy Charter Treaty
(ECT) and the Australia-Poland Bilateral Investment Treaty (BIT)
(together the Treaties), the Company has now filed its Statement of
Claim in the BIT arbitration claiming compensation in the amount of
GBP806 million (equivalent to A$1.5 billion or PLN 4.2 billion) as
assessed by external quantum experts engaged by Prairie.
HIGHLIGHTS
-- The Claim for compensation against Poland has been filed with
the Tribunal in the BIT arbitration in the amount of GBP806 million
(A$1.5 billion/PLN 4.2 billion), which includes an assessment of
the value of Prairie's lost profits and damages related to both the
JKM and Debiensko mines, and accrued interest related to any
damages.
-- The Claim against the Republic of Poland under both the ECT and the BIT continue:
Prairie alleges that the Republic of Poland has breached its
obligations under the Treaties through its actions to block the
development of the Company's Jan Karski and Debiensko mines in
Poland.
The Republic of Poland's actions have deprived Prairie of the
entire value of its investments in Poland.
-- The Company's Claim against the Republic of Poland is being
prosecuted through an established and enforceable legal framework
with both parties agreeing to apply the United Nations Commission
on International Trade Law Rules (UNCITRAL) to the proceedings.
-- The Company is well funded to pursue the Claim with the
US$12.3 million Litigation Funding Agreement (LFA) in place which
is currently being drawn down to cover legal, tribunal and external
expert costs and defined operating expenses associated with the
Claim.
Prairie's CEO Mr Ben Stoikovich commented: " The Claim is
proceeding at pace, with the Company now having submitted its
Statement of Claim in the BIT arbitration, which included a
valuation of damages prepared by external quantum experts. The
compensation being claimed by the Company is GBP806 million. The
Prairie management team continues to work with legal counsel and a
range of external experts in prosecuting the Claim."
For further information, please contact:
Prairie Mining Limited Tel: +44 207 478
3900
Ben Stoikovich, Chief Executive Officer Email: info@pdz.com.au
Sapan Ghai, Head of Corporate Development
Kazimierz Chojna, Commercial Officer
BACKGROUND TO THE CLAIM
The Company's Claim against the Republic of Poland is being
prosecuted through an established and enforceable legal framework,
with Prairie and Poland agreeing to apply the UNCITRAL rules to the
proceedings .
Both the BIT and ECT claim Tribunals have been constituted, with
both Claim's being registered with the Permanent Court of
Arbitration in the Hague. The BIT and ECT claim proceedings proceed
at pace, with the Company now having filed a Claim for damages
against Poland with the Tribunal in the amount of GBP806 million
(A$1.5 billion/PLN 4.2 billion), which includes an assessment of
the value of Prairie's lost profits and damages related to both the
JKM and Debiensko mines, and accrued interest related to any
damages. The Claim for damages has been assessed by external
quantum experts appointed by Prairie specifically for the purposes
of the Claim.
In July 2020, the Company announced it had executed the LFA for
US$12.3 million with Litigation Capital Management (LCM). The
facility is currently being drawn down to cover legal, tribunal and
external expert costs and defined operating expenses associated
with the Claim.
In September 2020, Prairie announced that it had formally
commenced with the Claim by serving the Notices of Arbitration
against the Republic of Poland.
Prairie's dispute alleges that the Republic of Poland has
breached its obligations under the applicable Treaties through its
actions to block the development of the Company's Jan Karski and
Debiensko mines in Poland which effectively deprives Prairie of the
entire value of its investments in Poland.
In February 2019, Prairie formally notified the Polish
Government that there exists an investment dispute between Prairie
and the Polish Government. Prairie's notification called for prompt
negotiations with the Government to amicably resolve the dispute
and indicated Prairie's right to submit the dispute to
international arbitration in the event of the dispute not being
resolved amicably. As of the date of this report, no amicable
resolution of the dispute has occurred, since the Polish Government
has declined to participate in discussions related to the dispute
and accordingly the Company has formerly proceeded with its Claim
as discussed above.
Prairie's investment dispute with the Republic of Poland is not
unique, with international media widely reporting that the
political environment and investment climate in Poland has
deteriorated since the change in Government in 2015. As a result,
there are a significant number of International Arbitration claims
being bought against Poland in the natural resources and energy
sectors with damages claims ranging from US$120 million to over
US$1.3 billion and includes Bluegas NRG Holding (Gas), Lumina
Copper (Copper) and InvEnergy (wind farms).
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