RE: The elephant in the room. "What concerns me is that PCY will not be in a strong position to negotiate electricity pricing."
I think PCY is in a stronger position than we disappointed investors are willing to extend. PCY is going to build a plant and install transmission lines and at their expense and with their coal to give Mongolia what it already imports from Russia. Mongolia does not have to do anything except agree to buy electricity and at lower rates then they are currently paying.
PCY has indicated that it expects a PPA by mid-2012. Mongolian elections are in June 2012. I have a hunch the PPA will be had in a March/April time frame leading up to the elections. Maybe even sooner since they have no doubt been in talks for sometime. IMO, its a good vote getter!