The coal concern has been pursuing arbitration with Poland under the APBIT and the Energy Charter Treaty for several years, aggrieved by what it claims was a breach of obligations to block the development of the Jan Karski and Debiensko mines in Poland. 

 

Prairie claims the government's actions "have deprived Prairie of the entire value of its investments in Poland".

 

It is pursuing its case under the United Nations Commission on International Trade Law Rules, supported by a US$12.3 million limited recourse litigation funding facility with London-listed Litigation Capital Management.

 

The company said the quantum of claims had been assessed by experts engaged by Prairie to assess "lost profits and damages" relating to the assets, plus interest.

 

Debiensko and Jan Karski were envisaged as producing a combined 12 million tonnes per annum of soft and hard coking coals, costing around $1.3 billion to develop.

 

Prairie argues the Polish Ministry of Environment made fundamentally flawed decisions when refusing to grant licences that it believes it is "owed", because it is a foreign investor in Poland. 

 

It has been pursuing the case since 2018.

 

Prairie raised A$4 million at 25c last July to examine business development opportunities, however over the past year has not announced any successful acquisitions.

 

It started the quarter with $5.3 million cash.

 

Prairie shares were up 9% this morning to 25c, valuing it at $59 million, although the company typically trades at low volumes.