(EnergyAsia, September 8 2011, Thursday) — Canada’s Prophecy Coal Corp said it secured coal sales agreements with Mongolian and Russian buyers totalling 92,000 tonnes for 2011.

The Vancouver, British Columbia company said it has sold 22,000 tonnes of coal to Energy LLC, a company registered in Russia’s Buryatia Republic, for use as a trial feedstock in local power stations and boilers. Over the next 60 days, coal stockpiled at Sukhbataar rail station will be loaded and railed cross-border into Buryatia via Naushki.

Prophecy said two local Mongolian companies and two Mongolian government power plants, separately have committed to buy a minimum of 70,000 tonnes for delivery in 2011. Prophecy expects to deplete its coal stockpile and operate continually to meet the off take commitments.

Its Ulaan Ovoo mine is now being served by the company’s owned new mining fleet and coal transportation trucks, crucial to turning it into a successful operation and supplier to local power plants this coming winter.

John Lee, CEO and chairman of Prophecy Coal, said:

“Ulaan Ovoo’s clean coal with its low ash (8%) and sulphur (0.5%) is highly desired.  We are making steady and solid progress to establish Ulaan Ovoo as a recognised coal supplier in local and international markets.”

Prophecy Coal Corp has over 1.4 billion tonnes of surface minable thermal coal resources on two coal properties in Mongolia. Its Ulaan Ovoo coal mine has started production while its Chandgana mine mouth power plant is currently being permitted.