dear mr kloppers

Further to recent comments made by bhp - cpl supporters, help me draft the letter to Kloppers, lets send off next week..... All we need is interest from one of the majors!!!

We could then proceed to send something to Albanese!!!

Dear Mr Kloppers,

Further to your statements at the Brisbane mining lunch ( i refer to the article posted in the age yesterday) i would like to introduce you to a company that will tick all the boxes with regards to your investment criteria.

Coalspur has one of the largest quality thermal coal resources on the ASX, furthermore and best of all, the actual resource is in Canada, which unlike Australia has the following advantages:
- a stable tax environment that recognises the importance of not continually wanting to tax the hand that feeds;
- a deregulated labour market where labour is more productive and not overpriced
- little to no union issues
- low rail / port costs which are all ready in place
- cash positive and profitable even with these low coal prices

All you need to do is build the plant, which we are sure with your buying power, current metal prices will be able to construct for less than half of what the current management forecast. actually why build, just shutdown one of your Queensland mines dismantle all the equipment and erect in Canada.

In fact, you could run the mine in such a manner that you would be cash positive within the year by setting up operationally in stages.

....... And so on....

Let's work on the draft over the weekend!!!! (This could be bhp's rivers dale)

Mining companies prepare for cut-throat future
Date
October 17, 2012 - 2:49PM
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Bridie Jabour
brisbanetimes.com.au reporter
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Mining companies are preparing to become more cut-throat by committing to fewer projects and axing those that present problems as they prepare for a downturn in the commodities boom, according to the CEO of BHP Billiton.

Marius Kloppers made the comments at a Brisbane Mining lunch this afternoon as he spoke on the future of the mining industry and hinted the wages of workers in the industry may have to be frozen or take a dive for companies to continue to be productive.

He used the keynote speech to also emphasise mining companies need a "stable" tax climate from the governments of the day if they are to continue to thrive.

With a slide projected on to the wall showing Australia's project construction wages much higher than Canada, America, Brazil and South Africa Mr Kloppers chose his words carefully.

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"As each of us, from individual companies to Australia as a whole, look forward to capturing the opportunities ahead, we should do so against a backdrop of the inevitable moderation of prices," he said.

"In this context, BHP Billiton's analysis shows that the next round of minerals investments in Australia will, almost without exception, be captured only if costs are decreased and productivity is improved.

"Companies and governments need to work in partnership towards attracting the next rounds of investments."

Mr Kloppers said the three factors that will be critical to the continuing success of Australia's mining industry were speed, stability and competitiveness.

He said speed meant "efficient and stream-lined" regulations and project approvals, stability meant a stable tax and royalty regime and competitiveness meant policy frameworks which "improved productivity".

"Our basic philosophy is to only operate assets that are cash generative, and to only invest in projects that meet our strict return criteria," he said.

"In response to the changed conditions, you will, therefore, have seen us re-sequence our growth portfolio, shut down some loss making capacity, and slow down or stop some development projects."



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