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Poland awards part of Prairie's Jan Karski coal mine to Bogdanka amid dispute

Prairie Mining Ltd. noted Lubelski Wegiel BOGDANKA SA's announcement of being awarded a mining concession by the Polish government for the K6-7 deposit area, which Prairie said forms part of its planned Jan Karski coal mine.

The company said Dec. 31 that the grant to Bogdanka "continues to demonstrate evidence of the discriminatory treatment faced by Prairie as a foreign investor in Poland."

Prairie has been locked in an investment dispute with the Polish government over the Jan Karski mine and said it is working with legal advisers to prepare submissions and finalize funding arrangements for international arbitration against Poland.

The dispute started due to certain measures taken by Poland in breach of the Energy Charter Treaty and Australia-Poland Bilateral Investment Treaty, according to the company.

An appeals court lifted an injunction in April granted to Prairie that prevented the Polish Ministry of Environment from issuing the licenses on the Jan Karski mine to any other parties until court proceedings concluded.