TER uses privilege obstructing ASIC investigation., page-43

There are a lot of well established coal mines which have not maximized their production. It all depends on their ability to increase production and the effect of forward contracts they sign.. Extreme commodity prices create mayhem and hysteria. I was reading the other day that NHC wants to triple production.

Large companies are prepared to lock in forward contacts at a lower rate to establish continuity within their operations. You can make make money without butchering the market. Those customers you butcher today, you might need tomorrow. The losses they make today will be regained and some when the market crashes.

Consumers often take advantage of commodity crashes. Customers become involved in vertical integration and purchase the mines with the resources they consume. This occurs because mid tier cost mines become unprofitable when the price corrects and is fair game for takeover. The consequence is the customers then own assets which become a bargaining tool for future commodity contracts with other customers.

When low cost, mid tier, high cost mines all come into production you build up over capacity and a crash.

Terracom might be just below mid tier cost but I am not so sure about its coal quality. They old saying its quality not quantity.

Sectors that suffered from a boom bust in 2008
Gold $730
Iron ore $62 ,
Copper, $1.40
Coal $62
Nickel, $13,600