Prairie armed for legal battle

Prairie in February last year served a notice of dispute on the Polish government, requesting that the government formally engage with the company in order to find an amicable solution regarding the development and construction of the company’s Jan Karski and Debiensko coking coal projects.

The dispute arose from measures taken by the Polish government that Priarie claims were in breach of the Energy Charter Treaty and Australia-Poland Bilateral Investment Treaty.

Prairie’s legal claim will now allege that the Republic of Poland has breached its obliations under both domestic law and the relevant international treaties, and the company’s claim for damages could include lost profits for both Jan Karksi and Debiensko, as well as the value of Prairie’s historic expenditure in developing both the projects, as well as interest and cost.

“While the company’s primary objective has always been the development of its world-class Jan Karski and Debiensko coking coal projects to operational status, the actions of the Polish government have made it impossible for the company to continue with the project development and have resulted in the expropriation of both the mines,” said Prairie CEO Ben Stoikovich.

“The substantial litigation funding secured from LCM is testament to the strength of Prairie’s claims. The A$18-million facility is non-dilutive to Prairie shareholders, will cover the full legal budget as well as partially cover a portion of Prairie’s operating expenses, while being repayable in the event that a damages award is paid out.”

Stoikovich said the company’s legal council is preparing arbitration claims to be submitted in the coming weeks.