Prophecy Coal Corp announces that its Chandgana Power Plant Project has been officially endorsed by the Mongolian Ministry of Natural Resources and Energy. The Mongolian Energy Regulatory Authority in charge of power plant license issuance has received the endorsement and is expected to issue a final response to Prophecy's license application in Q4 2011.
The request for licensing of "Construction of Energy Buildings and Installations" submitted by East Energy Development LLC a wholly owned Mongolian subsidiary of Prophecy in April 2011 was determined to be in full conformity with Clause 2 of Article 12, Energy Law. The company has undergone a rigorous power plant permitting process which included Environmental Impact Assessment approval by The Mongolian Ministry of Nature and Environment and support from the Mongolian Scientific and Technical Council. The power plant will be built right next to Prophecy permitted Chandgana Tal Coal Project.
Results from the Power Plant Feasibility Study by Evonik Industries and the Chandgana Tal Mine Study by Leighton Asia are expected in Q4 2011. In parallel, Prophecy has been in discussion with a number of potential Engineering, Procurement and Construction contractors with the goal of finalizing EPC selection expeditiously after the power plant license is obtained.
Prophecy cash position and equity holdings total over USD 90million as of September 1 and the company expects to fully fund the Chandgana project studies through to project financing.
Prophecy appreciates the support from the Mongolian Ministry and the community at large. The company looks forward to making the Chandgana Power Plant a reality and helping satisfy Mongolia and the region energy needs.
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