interesting, page-12

Thyshift,

Difference in price is an interesting question.

Price series data on coal (thermal).

http://www.indexmundi.com/commodities/?commodity=coal-australian&months=240

Have a look at the 10yr and longer series.

Coal has been over $55 UDS FOB Newcastle since early 2004. Mainly on Chinese demand. Prior to that, and for a long time it varied between 20-40 USD FOB Newcastle.

Now, how much is ESI going to cost, at port (i.e. FOB).

All AUD-

Interesting question. I could argue about $2.50 per raw tonne to dig up - LYA or IP Coal, Yallourn a little cheaper but not much).

Victorian Coal levy currently about $2 per raw tonne mined.

Assuming say $3 per raw tonne for LYA to sell it to ESI. (The La Trobe Valley power stations OWN their coal, unlike NSW or Qld. Sources - multiple, most recent, look at the announcements from Monash Energy and variations to the mine plans by Hazelwood) or ring the Company - LoyYang 03 51 73 2000, Hazelwood 03 51 35 5000.

Plus about IMO $5-9 per raw tonne to process (Thinking about 1.5-8 mtpa plant capacities)deduct for the sale of water, maybe product cost $25 per product tonne at plant. (Probably more)

Moving it to a Victorian Port?

Rail, today's infrastructure, EBrix briquettes used to cost $25 per tonne to move up to $1.5MT pa. Less now, as they truck it.

Plus handling at the port. ? $4-6, using similar costs to grain charges at Geelong.

So, IMO IMO IMO $55 AUD FOB Port Phillip or Geelong.

Would cost more if thru a new port and new rail spur to Hastings.

Assuming an $80c AUD USD, approx $45 USD FOB, allow 3-4 USD to move it to Newcastle latitude, approx $50 USD FOB.

All IMO risk is downside, in order,

- cost of moving it to port and

- cost of infrastructure for more than 1.5m tpa

- cost of production

could both get higher than estimates here.

So the price difference is (historically) negative, currently close, recent past profitable.

Choose your time period.

f111
Note: No ESI in portfolio, no intention to buy.