Prophecy Receives Permit to Mine at Ulaan Ovoo in Mongolia, Opening Ceremony November, 20

Prophecy Resources announced that on November 9th, the Company received the final permit to commence mining operations at its Ulaan Ovoo coal mining project in Mongolia. Prophecy is one of very few international mining companies to achieve such a significant milestone. The mine is production ready, with an official mine opening ceremony scheduled for November 20, 2010.

John Lee, CEO of Prophecy states:
"On behalf of Prophecy shareholders, I would like to thank the Government of Mongolia for the expeditious manner in which this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs over 65 competent Mongolian nationals and 4 expats. The Company also wishes to reaffirm its commitment to deliver coal to local Edernet and Darkhan powerplants in Mongolia."
 
The Ulaan Ovoo open pit mine is 10km from the Russian border and within 120km from Nauski TransSiberian railway station, enabling transportation of coal to Russia and by extension to Russia's eastern seaports. Thermal coal prices are trading at 2 year highs at Russian seaports due to strong demand from Asian economies.
 
Leighton Engineering is contracted to mine Ulaan Ovoo coal and trucking operations have commenced in transporting coal by established road for 120km from the mine site to Sukhbaatar rail station. The coal then travels either south to local Mongolian thermal powerplants or north to Russia by rail. Prophecy has received several Russian written expressions of interest and is working to finalize coal sales (off take) contracts with Russian entities.
Prophecy shares rocketed up 18% following this announcement and now rest on a 14% gain since Thursday.
Read announcement here
By author: admin - Nov 15, 2010 / Categories: News