Prophecy Resource Corp reports that a Detailed Environmental Impact Assessment pertaining to the construction of a pit-mouth 600MW coal fired power plant by Prophecy 1.2 billion tonne Chandgana Coal Project has been approved by the Mongolian Ministry of Nature and the Environment.
The DEIA is a 139 page document that was prepared for Prophecy by the leading independent Mongolian environmental consulting firm. The DEIA considered social and labor issues, climate and environmental circumstances representative of the proposed power plant. The approved study concluded that there are no major impediments to the project and provided recommendations on best practices for conservation of the environment and the community.
According to the preliminary plan of construction as outlined in the DEIA, the 600MW power station will be built and put into operation within 20 months and supply electricity through connection of 220 KW electricity transmission lines from the power plant to the Central Energy System and Eastern Energy System. 2 x 220 kV Central Electricity System transmission lines power 90% of Mongolian electricity demand. Furthermore, Chandgana is right on the path of a Government approved future CES grid extension.
With the DEIA, the Mongolian Ministry of Nature and the Environment concluded, "that the 600MW Chandgana power station project can be fully implemented, provided the measures to reduce adverse impacts and measures to prevent possible unexpected accidents envisaged in the detailed environmental impact assessment will be considered and taken to operate the power station."
Mr John Lee CEO of Prophecy Resource Corp stated "The DEIA approval is a major milestone clearing the way for full scale permitting in early 2011. Prophecy is committed to investing heavily in Mongolia and looks forward to working with all major Mongolian stakeholders to ensure Chandgana smooth rollout to providing affordable and reliable electricity to sustain the country rapid growth."
With a population of 2.7 million and an aging installed base of 650 MW, Mongolia runs an energy deficit of over 120 MW, which is made up from Russian electricity import at over US 7cents per kilowatt hour. The deficit is expected to balloon to 500MW by 2013 fueled by its GDP growth and new mission-critical mill and smelter openings.
Chandgana is approximately 1,000 kilometers from Beijing and 350 kilometers from the Chinese border. Mongolia Choibalsan City where Mongolian East Energy System ends is merely 70 kilometers from the Chinese border. Chandgana endowed base of 1.2 billion tonnes is ideally suited for future 4,200MW to 10,000 MW installed base vast potential exists to supply Chandgana electricity to China via dedicated 800kv DC lines.
The initial 2x300 MW power plants will be built on Prophecy owned land and serviced by 2.4 million tonnes of coal annually from Prophecy's 150 million tonne Chandgana Tal coal project with a strip ratio of 0.5 to 1. Future plant expansions will be serviced by Prophecy 1.05 billion tonne Chandgana Khavtgai coal project with a strip ratio of 2 to 1. Chandgana Tal has a renewable 40 year mining license and the coal mine can be fully commissioned within 90 days as was the case for Prophecy Ulaan Ovoo Coal Mine, Northern Mongolia.
