Mongolia approves first ever IPP in 20 years

Prophecy Coal speaks proudly of their mine-mouth power plant project, a first of its kind for Mongolia and one designed to augment, and ultimately replace, that country’s aging power supply infrastructure.

According to Prophecy Coal Corp.’s CEO and founder John Lee, the company is currently in the phase 1 of the construction of a 600 MW thermal coal power plant in central Mongolia that will be ramped up to 4200MW after phase 2.

“Initial 600MW capacity will be dedicated toward domestic consumption. Proposed output increase to 4200MW would enable Mongolia to export power directly into China by connecting to existing ultra high voltage lines,” he added.

The project which was granted licensing in November 2011 would be Mongolia’s first independent power plant project in over twenty years, he said.

“There are four existing power plants in Mongolia but they have been there as far back as the 1970s and, in technical terms, are very aged already, “ said Mr. Lee while noting that some other projects which were licensed in 1990s are currently inactive.

Mr. Lee noted that the company is in the final stages of negotiating a power purchase agreement with the Mongolian government. After which, After which, Prophecy will award a construction contract and seek to conclude financing arrangements before commencing construction in April 2013.