The 600MW Tevshiin Gobi mine mouth power project will be constructed at the Tevshiin Gobi coal deposit in the Santsagaan Sum of the Dondgobi province, Mongolia, with an estimated investment of $1bn.

Firebird principal James Passin said: "I am excited to advance this important energy project in Mongolia following the passage of the Investment Law in October 2013."

Burns and Roe Enterprises has completed the feasibility study of the power plant, which will be owned by Mogul Power.

SEPOCOIII vice president Zhang Hongsong said: "This project underpins the importance of the recent discussions for more energy cooperation – during the recent APEC meetings in Beijing and also recently addressed between the top leaders of both countries."

Mongolia ambassador to China Sukhbaatar Tsedenjav said: "The government of Mongolia supports this project which is the first mine-mouth IPP in the history of our country, and one of the first to pave the way for further cooperation between our two great countries."

In addition to securing Mongolian Ministry of Energy approval in 2013, the proposed power plant secured construction permit from the Mongolian Energy Regulatory Commission and environmental impact assessment approval from the Ministry of Environment.

Image: Mogul Power, SEPCOIII Electric partners to construct power plant in Mongolia. Photo: courtesy of Mogul Power LLC/PRNewswire.