Prophecy Resource ties up with Japanese firm to market Ulaan Ovoo coal

Prophecy Resource Corp. and Sojitz Corporation of Japan have entered into an exclusive agreement to jointly market thermal coal from Prophecy"s 208-million-ton Ulaan Ovoo coal deposit to buyers in China. The agreement also covers Japan and Korea, provided that the coal is sold through the Chinese land border from Mongolia.

By capitalizing on its extensive expertise in international coal trade, Sojitz Corp. and its Beijing affiliate, Sojitz (China), will assist Prophecy on a best efforts basis in securing letters of intent and/or offtake agreements from potential coal buyers for its thermal coal in advance of planned 2010 mining operations. Sojitz will also advise Prophecy on the best pricing parameters including volatility concerns as they apply to specific markets. Sojitz is a widely respected international corporation involved in a multitude of businesses including but not limited to energy (coal, LNG, oil & gas), metals, chemical and functional materials and machinery.

Wardrop Engineering is developing a prefeasibility study specific to the reserves and economic sensitivities of the Ulaan Ovoo deposit. The study is expected to be released in 45 days. On May 11, Prophecy entered into a mine services agreement with Leighton Asia Ltd. for the equipment leasing and mining operation at the deposit. Mine site establishment will commence in July, 2010, to ensure 250,000-ton production in 2010. Ulaan Ovoo is located within 10 km of the Russian border.
source:www.news.mn