Prophecy Coal Corp (PCY: CN) announced that the Mongolia Ministry of Natural Resources and Energy
has endorsed the development of the Chandgana power plant east of Ulaanbaatar. The Mongolian Energy
Authority has to approve the license and Prophecy can make preparations to finalize the development
plans. The power plant will have a capacity of 600 MW and the coal will be supplied by Prophecy from its
Chandgana mine. Its shares closed up 5.45% on Thursday at C$0.69.
Envidity Project Could Be Back On
Envidity’s planned $1 billion coal gasification and coal to gas power plant that could satisfy all of Mongolia’s
oil/gas demand may be back on course. Earlier this month, on the eve before the project was planned to
begin, Live Energy LLC and Shine Shivee LLC announced they were not ready. The two mining companies
contracted to provide the coal for the project were no longer able to do so. Envidity cautioned that if the
issue was not resolved, it would be willing to scrap the whole project. Envidity’s Chairman, retired General
Wesley Clark, urged the Mongolian Government to take action and ensure that the project commences.
Yesterday, eight days later, he received a response. President Elbegdorj offered to meet with General Wesley
Clark next week while in New York while there for the UN General Assembly. General Clark stated; “The
President has shown courage and leadership to the international investor community.” They are meeting to
see if they can smooth things out as “the door is still open” for the project and funding is still secured.
Russian Finance Ministry Lowers Oil Export Tax
On September 9th, 2011 the Russian Finance Ministry raised its export tax on oil to $443.90 from $438.
Today they announced it would decrease the tax to $409.60 - $412.5 as growing international debt concerns
have decreased oil demand. Gas prices in Mongolia are expected to decrease.
