CAMCE is a subsidiary of China National Machinery Industry (SINOMACH), which is a major Chinese state-owned enterprise.
Under the two-year deal, CAMCE will help Oracle in procuring the debt financing for the construction of the mine and power plant, which is likely to come from Chinese banks, while the capital expenditure will be underwritten by Chinese export and credit insurance company SINOSURE.
Additionally, the debt will be utilized to finance up to two thirds of construction costs.
An Engineering, Procurement and Construction (EPC) contract will also be signed between CAMCE and Oracle for the coal and power plant project.
As per the terms of the EPC, the development of mine and power plant will begin the second half of 2014, with production at the open pit mining operation scheduled to commence in 2015.
Oracle Coalfields CEO Shahrukh Khan said that initially the company will produce 2.4 million tonnes of coal per year which will supply a 300 MW power station.
"Eventually we hope that this will grow to production of five to six million tonnes of coal per year for a 1,100 Mega Watt plant," Khan added.
