The 532.4 hectares in the Khentii Aimag province of Mongolia were granted to the company for the development of a 600MW coal mine mouth power plant, expected to be the largest foreign investment made in the province.

The land use was granted after extensive community consultation and is expected to generate over 500 permanent local jobs,, with another 1500 once the plant is in operation, the company said in a statement.

That is currently slated for 2016.

Prophecy also committed to the construction of over 250 housing units with heating, recreational facilities and education centres.

Prophecy has already taken the initial steps towards development, granting Erchim Concern LLC a contract to take 4MW of temporary power to the power plant site as well as issuing tenders for the construction of the housing units and a water supply.

This company announced earlier this month that it was closer to financing the power station with a loan proposal and investment letter of intent.

The non-binding loan agreement with an unnamed international bank will provide funding for up to 85% of the plant’s construction contract.

The letter of intent from a shortlisted development contractor will represent a 20% equity investment in the project.

Prophecy said power plant will use 3.5 million tonnes of coal per annum from the adjacent deposit.

Prophecy’s Chandgana mining subsidiary controls over 1.2 billion tonnes of thermal coal, measured and indicated, including two licenses containing 124Mt of measured resource.