re: Ann: Contract at German Creek (Aquila) no...
Just as things were coming together.......
The question is Capcoal dropped the contract because they wanted to lower production. Was the BNT contract chosen because.... A: Capcoal didn't want to reduce their own workforce / production on their primary source B: Because Bounty was their highest marginal cost of production
If its B: then we have a problem. Having a higher than average cost of prodution is OK in boom times but you're the first to go when times get tough.
The silver lining? BNT has proven specialist mining equipment that potentially allows better reserve recovery than traditional equipment. One of the Chinese governments biggest concerns is the amount of coal being 'sterilised' by inefficient practices. Gary Cochrane has excelent China experience.
BNT Price at posting:
1.5¢ Sentiment: None Disclosure: Held
