The way I see it,
This infrastructure is needed and most of the costs and planning in the site has already been approved and sunk.
$450k for 5 years coal supply of 250,000 tonnes which includes repairs and maintenance on some existing infrastructure. It's not as though there's a mine on every corner with this sort of infrastructure willing to do a deal !
I do wonder what the future capacity of the infrastructure is ?
ECT will to be producing more than 25,000t of COLDRY a year in Phase 2.. Which begs the question , If they have signed this agreement- who are the ECT offtakers ?????
Obviously it takes more than 1T of raw brown coal to make a Tonne of Coldry.
$450k / 250kt = $1.8 a tonne including the upgrade to the infrastructure ? . What will COLDRY sell for when Black coal sells for more than $90 a tonne or better still, BBQ fuel sells for about 80c Kg-($16 for 20KG) or $800T
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- Ann: Coal Supply Agreement Signed with EnergyAustralia
Ann: Coal Supply Agreement Signed with EnergyAustralia, page-16
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