Prophecy Coal Corp.(TSX:PCY) announced that it has entered into a covenant with the Mongolian energy authority. The covenant outlines that the Company can bring the 600 mw Chandgana power project online by 2016.
As quoted in the press release:
The Covenant provides required support for the construction and operation of the Chandgana 600 MW (4 x 150 MW) mine-mouth power plant in central Mongolia and its capacity to supply the necessary electricity to the central and eastern region’s power grids by 2016.
Prophecy Coal, Chairman and CEO, commented:
We are very grateful for the support from various Mongolian government agencies to help bring the Chandgana Power Plant project online and on schedule. This landmark agreement forms the basis of our continued discussion regarding a PPA.