Ann: Strategic Alliance Formed with Noble Group , page-13

re: Ann: Strategic Alliance Formed with Noble... Another good mention in the SMH:

Australia has competition like never before, a challenge which would only really become apparent in the event of a downturn, a commodities bust. In the event of a downturn, costs begin to count.

As costs rise and grades drop, Africa and Asia look more attractive, despite the sovereign risk.

But the easy orebodies have been had. Mongolia, the new frontier in Asia, is luring bankers and entrepreneurs by the dozen.

Junior explorer Xanadu Mines, which floated on the stock exchange last year touting Mongolian coal and iron ore prospects, had already returned its seed capital investors 10 times their money in five years.

Xanadu has a 327 million tonne thermal coal resource, and another ''target'' resource of 150 million tonnes. On an enterprise-value-to-tonne-of-coal-in-ground basis this junior explorer's coal is priced at 30 a tonne. A tonne of coal sells for $70 over the border in China.

A decent geologist in Australia will cost $300,000 a year. In Mongolia, it's $30,000.

http://www.smh.com.au/business/time-for-a-sovereign-wealth-fund-20110204-1ags0.html