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Prophecy to restart Ulaan Ovoo coal mine in March

Prophecy Development Corp. will restart its Ulaan Ovoo coal mine in Mongolia this month, with an estimated 21,000 tonnes of coal production and sales.

The company said March 18 that several local and international consumers expressed interest in buying coal from Ulaan Ovoo, which was put on standby in 2014 after failing to secure enough coal sales contracts. The mine has a nameplate production capacity of 2 million tonnes per year.

In October 2018, Prophecy reached a lease agreement with a local company, which will operate Ulaan Ovoo and pay US$2 for every tonne of coal shipped from the mine.

Prophecy said that since signing, the lessee has spent about US$700,000 on the mine.