Research Report 8 cents to 50 cents a share, page-22

When Qld Govt introduces an Annual Storage Levy based on volume and salt concentration so the cost of storage is greater than the cost of processing or at least strong rumours of its introduction by Treasury.

Maybe strong rumours of tailing dam storage fees would signal Govts getting serious about environmental problems with no "stranded unfunded" problems....like ?

The Master Plan steers well away from this but it is the elephant in the room.Generally this can be said about all tailing dam storage and soon it is going to be important for State Govts to start cleaning up the mess or at least getting industry to clean up its mess. Whilst royalty streams mask financial pressures on State Govts an environmental disaster can quickly change the mood of the electorate and industry saying you have enough royalties to fix the problem.

At the moment it is easier to adopt the delayed solution so Shell has to bear most of the capital costs being first cab off the rank. Shell would be very keen for an industry solution (hence master plan without the stick and carrot of a storage levy - yet) as this would lower the cost to Shell of a solution.

Government intervention and industry solutions via levies is a fairer user pays system but takes time - mr market just has to see/whiff Govt intervention and repricing will occur.

The current reports whilst demonastrating a lower capex and opex cost the the capex is still a very big number. High capital costs has been the graveyard of many a valuable proposition as it takes a lot of risk capital to get to FID or Government intervention.

PWN is more attractive than the usual mining/oil development as it has a few big gorillas with deep pockets/influence hanging around as well as a few global water treatment companie that just love Governments not wanting to run things.

Interestingly Qld has not followed the corporatisation model of other states so water treatment should be a state owned body funded by industry levies and qld needs to start looking this but the Departments with oversight may not be that influential in bureaucratic agenda setting