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Prophecy Coal to restart Ulaan Ovoo operations in November

28th August 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – TSX-listed Prophecy Coal aimed to restart the curtailed Ulaan Ovoo coal mine by November, as several offtake agreements have been secured.

The company had installed significant water-pumping capacity at the mine site and would start pit dewatering at the operation, which was halted in mid-2012 on the back of sufficient coal stockpile to meet contractual obligations.

A new mine manager, transportation manager and government advisers have been appointed, while the camp, mining equipment and transportation trucks were in good condition and standing by.

The mine would supply more than 30 000 t/m of coal to cement plants, a metallurgical plant, a heat plant, chemical plants and Russian traders, all of which signed binding agreements over the past two months, the company said in a statement on Wednesday.

However, owing to the normally long start-up, some of the orders would be delivered in August and September from the existing coal stockpile.

“The company continues to survey its existing 28 customers and talk to new prospects, anticipating further increases in monthly sales forecasts as winter preparations begin,” Prophecy said, noting the mine’s design capacity of about one-million tonnes of coal a year.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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