price moving in the right direction, page-36

ANYONE GUESS WHICH COMPANY THEY ARE REFERRING TO BELOW??

Having become accustomed to the quality of South African coal but often squeezed by strong international prices, Indian end-users have decided to enter mining.

"South African cash costs are only $35 a tonne compared with market prices of $82 to $85 a tonne FOB Richards Bay," another end-user said. "Obviously it makes sense, it is cheaper, to supply coal from your own mines," he said.

***But only one deal has been struck for a mine which was swiftly re-sold to an Australian consortium because there was no rail link to move the coal to port.***

"We are looking at every South African coal company of a small to medium size but we want mines with good rail logistics and costs," he said, in an office filled with maps and presentations on the South African coal industry.