Mongolia Issues Chandgana Construction License

Mongolia’s East Energy Development, a subsidiary of Vancouver-based Prophecy Coal, has received authorization to build a 600-megawatt thermal power plant.

The Chandgana plant will consist of four 150-megawatt units, the largest plant of its type to be approved by the Mongolian government, according to a company statement. It will be located between the cities of Underkhann and Baganuur.

Coal for the Chandgana mine-mouth power plant will be supplied from Prophecy's Chandgana Tal Deposit. Tal contains 141 million tonnes of measured coal and is located nine kilometers north of Prophecy's Chandgana Khavtgai project — a deposit with over 1 billion tonnes of measured and indicated coal.

With license in hand, East Energy will conclude its selection of an engineering, procurement and construction contractor. The company plans to begin construction in the first quarter of 2013 with commissioning of the first unit scheduled for January 2016.

Photo shows Chandgana Pit 6 at Prophecy’s Tal Deposit, which will provide the fuel for the new power plant. Courtesy of Prophecy Coal.