Mongolian Government Approves Prophecy Resource's Environment Impact Report for Chandgana Coal Project, Proactive Investors

Prophecy Resource Corp said Monday that the detailed environmental impact assessment (DEIA) report pertaining to the company's Chandgana coal project has been approved by the Mongolian government.

The company said that the study concludes that there are no major impediments to the project, which aims to build a coal-fired plant serviced by coal produced from the site. The DEIA is a 139 page document, which was prepared by an independent Mongolian environmental consulting firm, and considers social and labour issues, climate and environmental circumstances of the proposed project.

Prophecy has been planning the construction of a pit-mouth 600MW coal fired power plant at Chandgana.  Mongolia, with a population of 2.7 million and an aging installed base of 650 MW, runs an energy deficit of over 120 MW, which is made up from Russian electricity import at over US 7 cents per kilowatt hour. The deficit is expected to balloon to 500MW by 2013, fueled by its GDP growth and new mill and smelter openings.

According to the preliminary plan of construction as outlined in the DEIA, the 600MW power station will be built and put into operation within 20 months, and will supply electricity through the connection of 220 KW electricity transmission lines from the power plant to the Central Energy System (150km away) and Eastern Energy System (60km away).

Prophecy said the approval clears the path for full scale permitting to begin in early 2011.

Chandgana is located approximately 1,000 km from Beijing and 350 km from the Chinese border, offering vast potential for the supply of Chandgana electricity to China via 800kv DC lines.

The company, which controls over 1.4 billion tons of open-pittable thermal coal in Mongolia, said it is currently evaluating proposals and offers on off take, design and construction agreements as well as investment.

Prophecy jumped more than 15% on Monday, trading at $1.07 as of 12:30pm EST.

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By author: admin - Nov 16, 2010 / Categories: News