Prophecy’s Mongolian coal mine achieves record production

Prophecy Development (TSX: PCY) reported that its Mongolian Ulaan Ovoo mine achieved a record monthly coal production of 37,800 tonnes in June.

The output record follows the restart of operations after a two-month halt that was the result of a delay in the approval of the mine’s 2019 environmental plan.

Ulaan Ovoo, located in northern Mongolia 17 kilometres from the Zeltura border to Russia, operates under a lease agreement whereby a private Mongolian company performs mining operations and pays Prophecy $2 for every tonne of coal shipped.

According to the Canadian company, the mine features an average strip ratio of 1.8 BCM waste/tonne of coal. The coal mined has yielded 5,000 kcal/kg GCV, less than 1% sulphur and low ash so it can be used for power plants, cement plants and heat boiler applications. 

In an NI 43-101 prefeasibility study performed back in 2010, measured resources at Ulaan Ovoo were estimated at 174 Mt, while indicated coal resources were estimated at 34 Mt.