OREANDA-NEWS. On 29 January 2008 CCI group (Australia), even having not started the construction of Lubelskaya #1 mine (CCI Lubel) in Zovkvivskiy district of Lvov region, announced that by the end of 2008 it will hold its IPO on Alternative Investment Markets London Stock Exchange. Recently, Lubel has attracted $60 mn for account of private offering in behalf of institutional investors from the UK, USA and Eastern Europe. JP Morgan Cazenove was an adviser to the deal.

It is interesting that the Australia-based company obtained the license for coal production at Lubelskaya #1 mine from the Ministry of Ecology back in February 2003. The license area is located 30 km from the Polish border and is part of Lvov-Volyn coal basin, and its commercial reserves amount to about 162 mn of coking K grade coal. Under the investment project, within 7.5 years this Australian holding is to invest $254 mn into ССI Lubel subsidiary, which will be in charge for all design and construction works related to the new mine. The company development plan envisages a construction of a modern mine and a washhouse. The company is to produce and process 5.2 mn tonnes of coal and produce 4.15 mn tonnes of coal concentrate per year. The complex is to be launched in 2012.

The plans have been revised now. The total cost of the project is now estimated at $450 mn, the coal production is to be commenced by 2013 and last 25 years. The design capacities have also been changed. The annual output will amount to about 4 mn tonnes of coking coal used in metallurgy. Lubel believes that the production cost of 1 tonne of coal will be about $22 as against the standard -- $45. With the announced design capacity the investor expects to generate in excess of $175 mn as profit each year.