$90m fund for lv brown coal, page-58

'What's stopping Exergen from using their own coal at their own allocation? How many years would this last before they have to pay MNM any money for their coal?'

Nothing at all.

After 2022, which is probably the earliest BCE can get out of the LV.

Tata want new coal supplies in place well before then.

Why else would they bind themselves to the BM JV, and sling MNM $500 000 to reimburse drilling costs? Why else would they be raising $100 mill on the back of an export date that can only via BM?

This is a big picture play by Tata and the Government.

If you were Anil Sardana, the boss of Tata Power, under huge pressure to obtain security of coal supply for the next 50 years to feed a rapidly expanding power network and looking to spend billions in the LV to get it, would you really do the dirty on your long time business partner if that partner has the largest brown coal position (by acreage) in the LV, and restrict Tata's available LV ground position to 10 sq km instead of 600 sq km as a result?

Probably not.