Prophecy Coal Corp forecasts aggressive growth ahead as the company plans to bring its 600 megawatt Chandgana power project in central Mongolia online by the first quarter of 2016, helping to relieve a major ongoing and growing power deficit in the country.
The project, for which the company has already officially submitted the power purchase agreement to the federal government, would be the first thermal coal power plant in the country in over 20 years.
According to a company statement, the official submission followed many months of work with a designated working group of more than 20 government members.
The next step will be to reach an agreement on tariff, followed by execution of the PPA. The company is seeking an off take deal, under which the government agrees to buy power from the plant at a specified rate during that time, subject to adjustments for inflation-related and certain other cost increases.
Mr Greg Hall a director of Prophecy Coal said “There are already three Soviet era coal power plants within Mongolia, but all are heavily polluting and suffer from frequent disruptions due to an over taxed power grid. The power deficit is becoming much, much worse and the Chandgana power plant will go a long way to addressing this."
Mr Hall said the large power plant which will be equipped with the latest technology in terms of clean coal energy is expected to be close to what one would find in a modern North American natural gas power plant. The plant will not only address the power shortage, but also the terrible pollution problem."
Prophecy is actively driving the process forward and has recently signed a co-operation agreement with the Energy Authority of Mongolia another step toward getting the plant up and running in the next four years. The EA is the agency that implements governmental policy in the power and energy sector of Mongolia.
As such, the company said that the plant will supply electricity to the central and eastern energy systems in Mongolia with an expected 100 MW net electric output starting from the first quarter of 2016, up to 200 MW from the third quarter of 2016, 300 MW from the first quarter of 2017 and 400 MW from the third quarter of 2017.
Source - Proactive Investors
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