Prophecy granted License for Coal-fired Power Plant in Mongolia

Prophecy Coal has received the license certificate to construct a 600 MW coal-fired power plant in Mongolia. (Picture: Prophecy Coal)

Prophecy Coal'S wholly-owned Mongolian subsidiary, East Energy Development, has received the license certificate from the Mongolian Energy Regulatory Authority to construct the 600 MW Chandgana power plant. Coal will be supplied from Prophecy’s Chandgana Tal Deposit.

Vancouver (BC), Canada – In terms of size, this 600 megawatt thermal power plant license is the first ever issued by the Mongolian government. To ensure strict compliance with Mongolian laws and regulations in obtaining this license, Prophecy retained a number of Mongolian and international consultants over the past 18 months. Considerable efforts were also spent on community relations.

Coal for the Chandgana mine-mouth power plant will be supplied from Prophecy’s Chandgana Tal Deposit, for which the company has already obtained a full mining license. Chandgana Tal contains 141 million tonnes of measured coal and is located just 9 kilometres north of Prophecy’s Chandgana Khavtgai project; a deposit with over 1 billion tonnes of measured and indicated coal.

The license issuance paves the way to conclude Engineering, Procurement and Construction contractor (EPC) selection, Power Purchase Agreement (PPA) and Project Financing arrangement in 2012. The target construction commencement date is the first quarter of 2013.