government support for project

Capped at less than $6m...no local support. Management doing everything right...maybe an option to sell the project to overseas interest, and reward the few loyal investors, coming out of a trading halt.

What price forward EBITDA of $800m (Ref: company latest presentation)

To support my above comments.....check this out from the State Gov web site....strong endorsement from the Minister.

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http://www.southaustralia.biz/Media/2010/11/16/Coal-to-liquids-project.aspx

This from the State Gov web site....strong endorsement from the Minister.

Coal to liquids project
Date:16 Nov 2010.
The State Government has welcomed the recent signing of a Memorandum of Understanding (MoU) between South Australian-based oil and gas company, Syngas, and the China National Electric Equipment Corporation (CNEEC).

Syngas is developing the Clinton Coal-to-Liquid (CTL) project a large scale, long-term, mainly diesel production plant 120 km north west of Adelaide, near the top of St Vincent Gulf, as well as Biomass Projects.

Minister for Industry and Trade Tom Koustantonis says the agreement with CNEEC is an important milestone in developing the approximately $3billion project.

CNEEC is a huge, state-owned enterprise with world-wide experience in the design, construction and operation of power stations, Minister Koutsantonis says.

This is a substantial step forward in bringing what is a major resource project to fruition.

The MoU gives both parties 18 months to negotiate an engineering, procurement and construction agreement.

Under this contract, CNEEC would undertake to construct the CTL plant and assist Syngas identify Chinese funding sources for up to 85 per cent of the projects capital cost, he says.

The South Australian Government, through the Department of Trade and Economic Development, has provided support for Syngas during the companys recent visits to China and has assisted with introductions to potential investors.

CNEEC will bring significant expertise and potential investment into South Australia.

Minister Koutsantonis says lignite coal for the Clinton plant could be supplemented by non-food biomass. Work with local grain growers on supply of residual straw for this and separate biomass energy projects are underway by Syngas.

Adding straw or other non-food biomass has the potential to reduce the overall carbon footprint of the Clinton Project and this fits with the State Governments sustainable development and environmental strategy, Mr Koutsantonis says.

Syngas aims to bring the project online in 2015/16 and operate it for more than 30 years.