The proposal designates a concrete-pour date of April 2013 and initial operations starting in the first quarter of 2016.

The long-term power off take contract would provide uninterrupted power to the Mongolian grid from the planned 600-megawatt mine-mouth station.

Chandgana includes a measured and indicated coal resource of 1.2 billion tonnes and will source fuel from two mining licences containing a measured and indicated resource of 131Mt.

Prophecy says it has identified coal seams at the project site with an aggregate minable thickness of 30m to 60m at depths ranging only as deep as 267m.

Since obtaining the tenement late last year, Prophecy has been in ongoing discussions with the government to secure power purchase agreements for a long-term energy supply across the country.

“Both Prophecy and the Mongolian government working group have been working hard for several months to reach this point,” Prophecy chairman and chief executive John Lee said.

“All of us have high expectations for the Chandgana project. Everyone here at Prophecy and our government counterparts are quite excited.”

The miner expects a formal reply on the project proposal within 90 days.