Friday, May 17, 2013

[BREAKING: Prophecy Reaches 25-Year Tariff Agreement for Chandgana PP, ]

Prophecy Reaches 25-Year Tariff Agreement for the Chandgana Power Project VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 17, 2013) - Prophecy Coal Corp. (TSX:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) ("Prophecy" or "The Company") is pleased to announce that the Company has received official correspondence from the Head of the Chandgana project working group (the "Working Group") designated by the Mongolian Ministry of Energy, outlining the terms of a tariff agreement reached by the Working Group and Prophecy Power Generation LLC ("PPG", wholly owned subsidiary of Prophecy), for the Chandgana coal mine mouth power plant project (the "Power Project"). The major terms of the tariff agreement include: An initial tariff for the first year of the Power Project plant operation; and A weighted average tariff for the remaining 24 years of power plant operation. The Company is pleased to announce that the tariff numbers are in-line with PPG's final proposal submission to the Working Group in February 2013. The Working Group was constituted in 2012 and consists of 11 members including officials and experts from the Ministry of Energy, the Energy Regulatory Commission ("ERC"), National Electricity Transmission Grid Company ("NETGCO") and private companies operating in the energy sector of Mongolia. The Working Group in the past several months has held numerous meetings with PPG to advance and conclude the tariff structure and advance the Power Purchase Agreement ("PPA") incorporating all major technical, legal and commercial aspects of the Project. Prophecy believes that the Tariff Agreement is a major catalyst that could lead to the Company: Concluding the PPA with the Working Group in an expedited manner; Finalizing joint venture discussions with several major Independent Power Plant ("IPP") enterprises, whereby the Company is targeting a significant infusion of capital and expertise from IPP partner(s); and Advancing final selection of an Engineering, Procurement and Construction ("EPC") turnkey contractor for the Power Project. The Company would like to thank all members of the Working Group for their professional dedication in advancing the Chandgana Power Project, and congratulate them for achieving this major tariff agreement milestone. With all major construction, environmental, mining, land use licenses and/or permits already in place, Prophecy looks forward to involving all stakeholders in building possibly the country's first major thermal IPP project. Mogi

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Cover Mongolia · Sukhbaatar District · Ulaanbaatar, Ulaanbaatar 14200

1 comment:

  1. It is possibly very hard to imagine how different our world was 600 to 300 Million years ago. Back in the period that coal is formed from was dominated by plant live and very little animal life. The other factors were higher oxygen content in the atmosphere along with a much moister environment. Based on these factors being in place it is not that hard to visualize lush and plentiful plant growth. So in some areas large accumulations of plant material would accumulate on the ground and create bogs were the material was covered by water or other plant material and did not completely break down. With geological changes other materials were deposited on top of these bogs and with depth and pressure turned to rock. The pressure dries the material, compressed it and eventually turned it to Coal, a flammable rock. This way coal is formed & tends to be in veins and stratified. Various conditions created various qualities of coal deposits that are presently mined for energy.

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