questions for crisis to ask at agm

Buyers

Whos buying the coal how is this progressing local market or export?

Eskom pays a rock bottom price to get a pretty poor product. Because of this if Eskom will not take the product and with the difficulties in washing and disposal can a company rely on its better quality coal to make a profit.?


An operator really needs to be able to get rid of the middling coal to Eskom, the coking coal fraction alone will not sustain an operation.



Financing

Who will finance the mine? Who,how, partnership etc.

Are they interested in developing a mine or just adding value to sell it on later?


People

How are they going to solve the problem of developing a mine given the technical skills shortage globally in the fields of mining, geology and engineering.

Infrastructure

Would it be economic to truck the coal to the power station when other competitors can use conveyors?


Transport

How is this going and what’s the plan to get coal to where the customers are?

With RBCT being fully allocated what are the plans to ship the coal oversea?

Water

Since there is very little water in the Waterberg how is the company going to solve this problem since the extraction of water from boreholes and from the rivers is strictly controlled by the Department of Water Affairs, with water licenses taking up to 5 years to obtain, especially for mining operations?

What are the risks with groundwater contamination if the water is close to the surface.

The Department of Water Affairs plans to bring water from the Pretoria area into the Waterberg, sufficent for 6 power stations, one CTL plant and the mines to supply them by 2013. What will RES do in the mean time to ensure a prompt opening of the mine?

New Tenements

Who owns the other 51% of the tenements that RES just bought?

Are they willing to sell the 51% or is this going to be another one sided partnership where RES pays for all the costs and the partner siphons off the profits.

What are the advantages of having a much greater resource. I take it that Waterberg 2&3 are probably duds and that is why they purchased the new tenements.

Are there any plans to spend money exploring the new Waterburg tenements for coal deposits?

Government Approvals

Has the government got conmcerns about the concentration of coal resources with two (ostensibly) Australian companies in the Waterberg area.

A mining license takes anything from 12 to 18 months during which a full EMP must be completed. The difficult one is the social and labour plan, ie how much you are going to spend on the locals and how many will get work. What provisions have you made that this will be sorted out promptly..

How do they deal with the SA Dept of Mines when applying for section 11 transfer of ownership of the prospecting rights. The Section 11 issues are based on the fact that the change in mineral rights ownership in 2004 was designed to give the previously disadvantaged population (PDA) a share in the mineral wealth, however those targeted are now busy selling the "free" rights to all and sundry which is becoming a issue for the ruling party and there may be changes in legislation, but definitely attitudes

What procedures have you in place to keep yourself on all the radar screens of the government?.

Other

Ask them to list their foreseeable problems and how they are going to manage them.

Tasmania

Can management shed any light on the situation in Tasmania?