all aboard re rate re rate, page-5

Rio have held this ground for many years. There may be coal in the northern block of EPC 1768 which cannot be mined economically by a big company but could by a small company like Mozambi using the economies of scale and perhaps some lateral thinking.

The potential lies in the Rangals, and to justify the capital costs you are probably going to need 50Mt. The Fort Cooper coals are not really coal at all, more like a coal banded clay of no commercial value, and the Moranbah coals could be too deep. A lot is going to hinge on how good the Rio drill database is. So it is a toss of the coin on this one.