Prophecy said the undisclosed buyer has indicated that the initial purchase will meet shortfalls from other suppliers, and that it would eventually like to increase the supply from Prophecy to 300,000 tons on an annual basis.
The buyer currently purchases in excess of 850,000 tons of coal annually from various local suppliers, said Prophecy.
The company said its high quality thermal coal (NAR 5100 kcal/kg) is ideal for DRI, which is also known as sponge iron.
Prophecy chairman and CEO John Lee said "As we move past the mine establishment phase at Ulaan Ovoo, we anticipate steadily decreasing operating cost and increasing sales quantity and price."
