Ann: Company presentation, page-30

"'The Oz' says the policy may outrage some miners. It means Newcastle 6000 coal may have to be sold into the domestic market for about A$136!"
.
I seriously doubt that this will occur.

1) Does Australia actually burn 6000 kcal?
2) To burn the 6000 kcal it'll need to be blended down to maybe 2000 or 3000 kcal.
3) Worst case scenario is that this blending down will be done with shit coal that was never going to be exported.
4) best case scenario is that the blending down will be done with sand/water.

The blending down of the sale product is a linear relationship.
Therefore, to get our beautiful 6000 kcal stuff down to 3000 kcal, it'll be a 1:1 blend minimum.
That is, one part sand to one part 6000kcal coal.
The weight of sand is approximately 1.6-1.7 times that of coal, therefore... the weight will increase beyond the 1:1 blend to achieve 3000 kcal.

End result is that we won't nesecerialy be selling our coal for AU$136/t but in reality we'll be getting more than twice that relative to the export coal.

IT'S ALL ABOUT THE BLEND BOIZ.