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.
The Ulaan Ovoo mine was commissioned in March 2019
Ulaan Ovoo, located in northern Mongolia some 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%
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.