AUL 0.00% 28.5¢ austar gold limited

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  1. 2,568 Posts.
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    I could never really get my head around the issue of ALDP timing and S7 allocation timing.

    Consider this, say 4 companies are to be given ALDP grants to build a demo plant in the LV. What if they don't have access to any brown coal in LV but have the backers and the tech? How do they build their demo?

    This conundrum wasn't addressed by govt ALDP submission criteria or any govt ann to date as far as I can tell

    Will ALDP winners be garaunteed an S7 allocation? Perhaps they are given a couple of acres for their demo. But this leads to my second big question.

    Why allocate S7 land now before the ALDP winning techs have proven their tech is commercially viable and can prove that they are deserving of an S7 allocation?

    I can see them solving it two ways. Garauntee S7 brown coal to ALDP winners if they can prove the commercial viability of their tech. They get access to a few acres now and the rest after proving their tech.

    Second, was i believe suggested by ex-exergen chief in a public hearing on mining in Victoria, to create a superpit type scenario whereby each company has access to the coal for a fee and may the best tech win.

    Either way I would expect any S7 allocated land to be tied up with caveats so that landholders can sell on their S7 allocation for profit. Any unused S7 land should revert to the state. This should stop speculators. And Mantle without a jv with a bce tech for the LV land would be just that, a speculator.
    Mantle need their LV tenements granted, jv signed for LV, and then as a joint venture they apply for S7.

    All IMO and DYOR.
 
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