UPDATE 1-Prophecy gets coal mining permit in Mongolia

Thu Nov 11, 2010 9:13am EST

* Gets OK to start operations at Ulaan Ovoo coal project

* Says mine is production ready

Nov 11 (Reuters) - Canada's Prophecy Resource Corp PCY.V said it received the final permit to start mining operations at its Ulaan Ovoo coal project in Mongolia, making it one of the few global firms to get mining rights in the country.

Vancouver, British Columbia-based Prophecy said in a statement the mine is production ready and that an official opening ceremony will be held on Nov. 20.

Canada's Khan Resources Inc KRI.TO has been caught in a legal tangle with Mongolian authorities over its mining licenses at Dornod, the country's biggest uranium deposit. [ID:nSGE69Q0KG]

Prophecy shares, which have gained 67 percent in value since the company secured a $10 million loan for its coal mine in September, closed at 82 Canadian cents on Wednesday on the Toronto Venture Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Unnikrishnan Nair) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

FILED UNDER: