Positive Feasibility Study for Prophecy Coal’s Mine-Mouth Power Project in Mongolia
Prophecy Coal has received a positive feasibility study for the Company’s 600 MW Chandgana Mine-Mouth Power Project in Central Mongolia. The Report was independently prepared by Ralf Thomsen, Project Manager at Steag, a German firm specializing in the planning, financing, construction and operation of highly efficient, thermal power plants for fossil fuels.
Vancouver (BC), Canada – The scope of the feasibility study covers technical specification, deployment, and financial analysis of a 4 x 150 MW thermal power plant to be built adjacent to Prophecy’s Chandgana Tal coal deposit, which contains 140 million tonnes of measured coal. The Power Plant and the coal deposit have respectively already received a construction license and a mining license in 2011.
Engineering, Procurement & Construction Management (EPCM) selection and Project Financing Discussion are underway and expected to be concluded in 2012.
Construction is planned to start in April 2013, with the first 150 MW unit being commissioned in Oct 2015, and subsequent units to roll out in April 2016, October 2016, and April 2017. With proper maintenance, the project will have 30 years of commercial operation.
Capital Cost and Structure
Capital cost is projected to be USD 744 million for the 150 MW x 4 project, or USD 1,240 per kW. This includes the power plant, overhead transmission lines, and administrative costs. It does not include mine development cost. A mine costing study was conducted and completed by Leighton Asia.
The target capital structure is 30 per cent equity, and 70 per cent debt with a 10 per cent annual interest rate and 10-year pay back. It is envisioned that financing will take place at the project level (i.e. via Prophecy’s wholly-owned East Energy Development, which holds the construction license).
Vancouver (BC), Canada – The scope of the feasibility study covers technical specification, deployment, and financial analysis of a 4 x 150 MW thermal power plant to be built adjacent to Prophecy’s Chandgana Tal coal deposit, which contains 140 million tonnes of measured coal. The Power Plant and the coal deposit have respectively already received a construction license and a mining license in 2011.
Engineering, Procurement & Construction Management (EPCM) selection and Project Financing Discussion are underway and expected to be concluded in 2012.
Construction is planned to start in April 2013, with the first 150 MW unit being commissioned in Oct 2015, and subsequent units to roll out in April 2016, October 2016, and April 2017. With proper maintenance, the project will have 30 years of commercial operation.
Capital Cost and Structure
Capital cost is projected to be USD 744 million for the 150 MW x 4 project, or USD 1,240 per kW. This includes the power plant, overhead transmission lines, and administrative costs. It does not include mine development cost. A mine costing study was conducted and completed by Leighton Asia.
The target capital structure is 30 per cent equity, and 70 per cent debt with a 10 per cent annual interest rate and 10-year pay back. It is envisioned that financing will take place at the project level (i.e. via Prophecy’s wholly-owned East Energy Development, which holds the construction license).
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