Hallie, 100+ million for 20 years??? Firstly it will take min 2-3 years to set up...then a gradual ramp up to say 30-40 million tonne a year over probably a five year time frame at best! where i imagine it would stay for the reaminder of mine life. So we may end up with 12 years at max production of 40mil ton...do the math, it doesn't equate to 2.5 billion worth of royalties. This is assuming they can mine this amount pa, it is a massive amount of coal to be extracting.
This is all assuming the rumours are correct but not so sure the royalty aspect adds up at all, unless they have some terms written into the deal. A mine of this magnitude takes an enourmous amount of infrastructure and time to set up.
Anyhows we should know the full details soon enough but if the rumours are true...PB has done a number one us all again...wait and see shall we.
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