Prophecy Resource Corp. (CVE:PCY) (OTCQX:PRPCF) said Thursday that after eight months of due diligence and studies, the company has submitted a formal request with the Mongolian ministry to build its planned Chandgana power plant.
Last August, the company, which is focused on energy, nickel and platinum group metals projects, appointed local Mongolian consultants to initiate feasibility and other studies on the planned 600MW Chandgana mine power plant, as Prophecy holds the Chandgana coal deposit in central Mongolia.
The necessary financial and technical analysis has been completed, including an environmental impact assessment for the facility, which was approved by the Mongolian ministry last November, and the feasibility study required to construct and operate the plant.
The 600MW thermal power plant will be connected with Mongolia's existing Central and Eastern energy systems, part of the long-term development policy of the country to supply cleaner energy.
The company said that as the project scales up to 4,200MW, there is potential to export the surplus power to China, with Beijing located just 1,000 kilometres to the south.
Once Prophecy receives the Ministry's formal endorsement, the company will proceed to work with the Mongolian Energy Regulatory Authority for the issuance of a permit. The application and permitting process is anticipated to take between three to six months.
Prophecy controls over 1.4 billion tons of surface minable thermal coal in Mongolia.