Prophecy Coal Corporation has secured a parcel of land on which to build its proposed Chandgana power plant in central Mongolia. The 532 hectare site has been granted to Prophecy’s wholly-owned Mongolian subsidiary Prophecy Power LLC in a decree from the Citizen’s Delegate Representative Members of Murun province.
Prophecy’s country manager Oscar Mendoza says the company made a significant effort during recent months to secure the Land Use Rights, including extensive consultation with local citizens and representatives regarding the impacts and benefits of the power plant.
“Prophecy would like to sincerely thank all the residents of Murun Soum and the surrounding area for their support of the Chandgana project, and look forward to working closely with all stakeholders to timely advance Prophecy’s Chandgana power plant project,” he says.
The proposed power plant, which is forecast to begin operation in 2016, is the largest foreign investment ever made in Khentii province. It is expected to generate more than 500 direct permanent jobs for local residents plus a further 1500 indirect jobs once the plant commences operation.
Prophecy has committed to the construction of more than 250 modern housing units with heat, recreational facilities and education centres as well as providing grants to make Murun province and the surrounding area one of the most economically attractive and desirable living areas in Mongolia.
Now that the Land Use Rights have been secured, Prophecy has issued a contract to Erchim Concern LLC to bring 4MW of temporary power to the Chandgana site from a local 35kV power line.
Chandgana is 60km from Underkhann city and 150km from Baganuur city with construction of transmission lines linking the two cities through Chandgana seen as a top priority for a much improved and efficient national Mongolian energy system.
In other news, the company is continuing discussions regarding the purchase of the Tulgalgatai coal licences from Tethys. Prophecy’s creditor Waterton Global Value has agreed on a deal which includes Prophecy setting aside $3.5 million in escrow for loan repayments and issuing 2 million common shares as security.