mnm v esi, page-41

Foz, amazed,

The statements made were neither bold or knowledgeable.

"Exergen's and MNM's biggest problem it would seem is that it will be a very difficult process to acheive a mining development licence for a 1-2B tonne reserve in the heart of broader Melbourne's growth corridor."

Bacchus Marsh is located 50kms west of Melbourne. At the current rate of growth the large deposit could be lost to development. It has already been saved once by the Government, and classified as a strategic resource for the benefit of Victoria. A switched on Government would commence the mining as soon as possible so that the resource does not impede on growth in the distant future. The site could be used as a dam for water storage and flood mitigation, as we have seen the benefits from recently.

"and I dont think that they will develop this mine inside of 10 years if at all."

Yallourn Energy to took 5 years for a totally different project, Exergen have expressed the need for haste, we have an off take from 2014 and the Government has so far been very quick in the progression at BM.

"Before Id become an MNM investor - Id be asking management - why couldnt Exergen secure coal in the LV (they tried all sorts of "tricks"... heavily publicised) where they could be assured of coal supply in an existing mining licence and within a zoned mining area?

Isn't it obvious that if they were located in the LV they would have needed to build a pipeline to port, at BM they have rail access. Bacchus Marsh could have been offered by the Government as an alternative.

"Why did Exergen have to resort to these last resorts? Why did Loy Yang Power choose Coldry over Exergens tech? LYP are the cream of the crop re lignite p/stations worldwide for many reasons. "

Because Exergen wants more than $5/tonne for one. Secondly Exergen don't need a power station for their process. Thirdly they have Tata Energy wanting coal for their new power stations with whom we have an off-take.

What it comes down to is ESI is a technology company, they have a crummy deal with Loy Yang where they have sold the majority of their Australian profits so they can develop their technology on a power station as designed. They might be OK if the technology works well and is not superseded by CHTD and the technology is exported to other countries.

Mantle is a totally different kettle of fish. They have a very small MC and are planning a project that would return around $100/tonne in a few short years. They have a JV where they only pay half the costs but receive 50% of very large profits. Then there are the other projects but we can save them for the MNM thread.