The Conversation (0)
A positive feasibility study for the Company’s 600 MW Chandgana Mine-Mouth Power Project in Central Mongolia has been received by Prophecy Coal Corp. (TSX:PCY,OTCQX:PRPCF,FWB:1P2). Highlights include a positive feasibility due to the volume of coal resource along with the project’s proximity to China offering the potential to scale up capacity and export electricity to China.
As quoted in the press release:
This fully-licensed power plant project has first-mover advantage to supplying Mongolia much needed electricity, which currently comes from antiquated plants totaling approximately 700 MW. The coal resource is next to a two-lane highway and 150 km from the existing power grid. Once power and the mine are brought online, there is good potential to introduce additional plant units at lower capital costs.
Mongolia is one of the fastest growing countries in the past decade. The enormous Oyu Tolgoi copper/gold project, coming on stream in 2013, alone could boost Mongolia’s GDP by up to 30%. With the growth and new wealth, Mongolia has the urgency to invest in cleaner, more efficient, and long-term stable domestic power infrastructure.
Mongolia-China relations have warmed in 2011 and we are optimistic that this trend will continue. Prophecy’s asset, structure, and networking represent an opportunity to leverage Chinese capital and expertise to generate electricity from Mongolia’s vast coal resource. This electricity is to be created and consumed in Mongolia by its citizens.
In the long run (10 years), the volume of coal resource along with the project’s proximity to China (approximately 400 km from Chinese border and 1,000 km from Beijing) offers the potential to scale up capacity and export electricity to China.
Prophecy Coal CEO, John Lee, said:
“The Feasibility Study has outlined the robust financial return for the Chandgana power plant based on conservative parameters. Our low-cost coal supply enables future delivery of affordable and stable electricity to both Central and Eastern Mongolia. The opportunity represents a potential long term revenue stream from power plant operation, as well as from coal operation, without coal transportation issues.”
Click here to read theProphecy Coal Corp. (TSX:PCY) press release
Click here to see the Prophecy Coal Corp. (TSX:PCY) profile.