Prophecy Resource to nearly double Mongolia’s power capacity

Mongolia is about to become home to a new coalmine and power plant, thanks to a Vancouver company.

On Monday, Prophecy Resource Corp. (TSX-V:PCY) said the Mongolian government had approved an environmental impact assessment for its 600-megawatt pit-mouth power plant.

That news came just days after the Vancouver-based company said it had received a final permit to mine at its Ulaan Ovoo coal project there.

Although the mine will enjoy an official opening ceremony November 20, the power plant won’t be finished for another 20 months.

“Prophecy is committed to investing heavily in Mongolia and looks forward to working with all major Mongolian stakeholders,” said John Lee, Prophecy’s CEO.

The coal-fired power plant will add 600-megawatts of power to a country that has an installed base capacity of 650-megawatts. The company said the plant would be fueled by coal from its Chandgana coal project.

In October, Business in Vancouver interviewed Mongolian Prime Minister Sükhbaatar Batbold who was in the Lower Mainland promoting his country’s wealth of mineral riches. (See “Mongolian prime minister renews pitch for resource opportunities amid Vancouver tour” – issue 1094; October 12 to 18.)

Batbold said the landlocked Asian nation was working hard to promote investment and rid the country of its Communist past.

On November 16, Prophecy’s share value hit a 52-week high of $1.10. jmckay@biv.com