DAMAGES CLAIM AGAINST POLAND FORMALLY COMMENCES
Prairie Mining Limited (Prairie or Company) announces that it has formally commenced international arbitration proceedings by serving Notices of Arbitration under both the Energy Charter Treaty and the Australia-Poland Bilateral Investment Treaty (Treaties) on the Republic of Poland.
The Company's international arbitration claim against the Republic of Poland will be prosecuted through an established and enforceable legal framework, and an outline of the process is included on page four of this announcement.
Prairie 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, effectively depriving Prairie of the entire value of its investments in Poland.
Prairie's claim for damages may include, but is not limited to:
- The value of Prairie's historic expenditure in developing both the Jan Karski and Debiensko mines;
- Lost profits and damages that the Company has suffered as a result of Poland's acts and omissions which have resulted in the expropriation of both the Jan Karski of Debiensko mines, which is linked to the considerable Net Present Value of both mines at the time of Poland's international treaty breaches; and
- Accrued interest related to any damages award and all costs associated with pursuing the claims to arbitration.
The Company is not able to make any further comment in relation to the potential quantum of any claim for compensation at this point.
Prairie's CEO Mr Ben Stoikovich commented: "Following the announcement in July that the Company had secured A$18m for litigation funding, the filing of the Company's Notices of Arbitration is the next step forward in its pursuit of damages following actions and omissions by the Republic of Poland, which have prevented Prairie from developing its world class Jan Karski and Debiensko coking coal projects. We have had no option but to take this action and enforce the Company's rights to recover full value for shareholders through international arbitration."
ECT, Energy Charter Treaty