2011-08-29 08:48 ET - News Release
Mr. John Lee reports
PROPHECY SECURES COAL OFFTAKE AGREEMENTS FOR 2011
Prophecy Coal Corp. has signed coal sales agreements with Mongolian and Russian buyers totalling 92,000 tonnes.
In particular, 22,000 tonnes of coal have been sold to Energy LLC, a company registered in the Buryatia Republic of the Russian Federation. This coal will be consumed in local Buryat power stations and boilers. During the next 60 days, the coal stockpiled at Sukhbataar rail station will be loaded and railed cross-border into the Republic of Buryatia in Russia via Naushki. Energy LLC had imported a landmark trial shipment from Prophecy in June.
The remaining four coal purchasers are two local Mongolian companies and two Mongolian government power plants, committing to buy a minimum of 70,000 tonnes to be delivered in 2011. Prophecy expects to deplete its coal stockpile and operate continually to meet the off take commitments.
John Lee, CEO and Chairman of Prophecy Coal states: "Ulaan Ovoo's clean coal with its low ash (8%) and sulphur (0.5%) is highly desired. We are making steady and solid progress to establish Ulaan Ovoo as a recognized coal supplier in local and international markets."
Ulaan Ovoo is now operating on 100% Company owned new mining fleet and coal transportation trucks.
The Company would like to thank the Mongolian local community and government in helping turn Ulaan Ovoo into a successful mine and reaffirm its commitment to supply coal to local power plants this coming winter.
