Under the deal the buyer will pick up the coal at the mine gate.

According to Prophecy the buyer is a new customer with a substantial presence in the region and the contract is separate from sales contracts the company announced in August.

The first shipment is due in November.

Prophecy said it was also restarting mining at Ulaan Ovoo, which had been curtailed since July 2012.

Pit dewatering has started, leased mining equipment has been recalled and diesel and parts needed to bring the mine back into operation are being bought.

The company has November as a target restart month.

Prophecy has executed coal sales contracts totalling 60,000tpm, including the latest mine gate contract.

Fulfilling all the offtake agreements is contingent on the mine restart as the quantity and quality of the existing stockpile coal, which has been used to fulfil orders so far, is insufficient to meet demand beyond October.

Prophecy is also working to get access to the Zeltura border.

It says government documents state that the border is officially listed as “under renovation”, which means it is neither open nor closed.

In the past months Prophecy has been in discussions with various ministries and has offered to renovate associated Zeltura infrastructure, including the customs clearing facility at the minesite.

Road improvements, which require a feasibility study and environmental impact assessment studies, are expected to be completed by the company by year-end.

The road improvement project is expected to take two to four months based on the tenders received.

Prophecy recently executed a sales contract with a buyer in Russia, which is contingent on the ability to transport coal through the Zeltura border.