A Vancouver-based company is behind Mongolia’s first shipment of coal to the Republic of Buryatia in the Russian Federation.
On Wednesday, Prophecy Coal (TSX-V:PCY) said it had shipped 650 tonnes, or 10 wagons worth, of coal from the company’s Ulaan Ovoo mine in Mongolia to an energy company in southeastern Russia.
The coal was sold to produce power and Prophecy hopes it will be the first of many sales to come.
In fact, the Vancouver-based miner said it was collaborating with government and private entities to open the Zeltura border post near Ulaan Ovoo, which would make it easier for Russian customers to access the company’s product.
The mine went into production last November and has produced more than 200,000 tonnes of coal.
Prophecy’s next shipment is scheduled for July and will be sent to the port of Sovetskaya Gavani on the western shores of the Pacific Ocean.
Despite production at the mine, Prophecy has yet to turn a profit.
The company finished the first quarter with a $2.5 million net loss, though its cash position soared 422% to $19.7 million when compared with the same period in 2010.
Prophecy could not be reached for comment regarding the Russian coal shipment, but in a company statement a Buryat government minister called the shipment an “historic” event.
At press time, Prophecy’s shares were up 3% to $0.60.