With this important milestone, the company expects approval from the Mongolian Ministry of Road and Transportation for the road feasibility study Prophecy submitted for the construction of a 17km road to connect the Ulaan Ovoo mine to the Zeltura border.
The company is also working with the Mongolian Customs General Administration to establish a customs inspection and clearance area at its Ulaan Ovoo mine, with the end game to see the Zeltura border opened and to transport its first shipment of coal through it this year.
Ulaan Ovoo’s management is focused on the Russian market, having already sold and delivered coal shipments from Sukhbaatar rail siding to a number of Russian customers, realising sale prices for coal with GCV of 4500kcal/kg to 5000kcal/kg with less than 10% ash and less than 1% sulphur ranging from 1800-2400 roubles per tonne ($A56 to $73 per tonne).
The mine’s management is also confident about the prospect of increasing both the quantity of Russian sales and number of Russian customers over time.
“The opening of the Zeltura border is expected to reduce transportation costs and thus, increase the company’s sales margins and competitiveness in Russia,” Prophecy said.
