The Conversation (0)
Chandgana Coal LLC (Chandgana Coal) and Prophecy Power Generation LLC (PPG), both wholly owned subsidaries of Prophecy Coal Corp. (TSX:PCY,OTCQX:PRPCF,FWB:1P2), signed a Coal Supply Agreement (CSA) to develop the 600MW mine mouth Chandgana power plant project. The Agreement will also provide stable cash flow returns throughout the first 25 years of the mine.
As quoted in the press release:
As per the CSA, Chandgana Coal will supply 3.6 million tonnes of coal annually, at a price of USD17.70 per tonne for a period of 25 years. The CSA coal price is competitive to Mongolian domestic thermal coal prices and is subject to annual indexing on based on the USA CPI Index, Mongolian Wage Index and Mongolian Diesel Price Index. PPG has committed to purchase a minimum of 2 million tonnes on a “take or pay” basis, with customary breakup fees payable by PPG. The CS A’s coal delivery date is anticipated to be in the second half of 2016, subject to PPG signing a Power Purchase Agreement, obtaining all necessary governmental approvals, and project financing.
Click here to read the Prophecy Coal Corp. (TSX:PCY,OTCQX:PRPCF,FWB:1P2) press release
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