a interesting read, page-8

Are the Federal and Victorian Governments potentially a part funder for the proposed MNM/exergen BM/LV brown coal export projects?

This speech by the Federal Resources boss Martin Ferguson a week ago makes that HRL cash diversion rumour look even stronger:

http://minister.ret.gov.au/MediaCentre/Speeches/Pages/AddressSKMfunction.aspx

these are the key sections for MNM about the future of Victorian brown coal as Martin Ferguson sees it:

'Today we are continuing to investigate how, in a carbon constrained environment, we can continue to make use of the 500 years of Latrobe brown coal at our disposal.

To this end, my Department and the Victorian government are collaborating on a range of projects and a Coal Road Map.

This will set out sustainable and long term opportunities for brown coal – but more importantly ensure the Latrobe Valley remains an energy rich powerhouse.'

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'And, along with the development of new drying, gasification and liquefaction technologies, CCS might even open up brown coal to export markets.'

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read that bit closely - 'the development of new drying, gasification and liquefaction technologies, CCS might even open up brown coal to export markets.'

The leading combined drying and liquefaction of brown coal techniology currently being funded by the Vic and Fed Govts is the exergen/csiro DICE project. And the aim of the exergen/mnm JV is to open up brown coal to export markets.

Ferguson has been an exergen supporter for years. He would know very well what exergen and CSIRO are up to with the DICE project. If this is not a direct reference to exergen's brown coal project what is it a reference to?

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http://minister.ret.gov.au/MediaCentre/Speeches/Pages/AddressSKMfunction.aspx

this is the entire text of the Ferguson speech that deals with the future of Victorian brown coal. It makes great reading for MNM longs.

'The future of brown coal

The future of the Latrobe Valley's economy will depend on diversification.

The transition to a low carbon economy will bring new opportunities to the Latrobe Valley in this regard.

I think finding alternative uses of brown coal could be one such opportunity.

It's worth remembering that in the 1950s and 1960s, Latrobe Valley brown coal was gasified.

This gas actually supplied Melbourne before Bass Strait was developed.

Today we are continuing to investigate how, in a carbon constrained environment, we can continue to make use of the 500 years of Latrobe brown coal at our disposal.

To this end, my Department and the Victorian government are collaborating on a range of projects and a Coal Road Map.

This will set out sustainable and long term opportunities for brown coal – but more importantly ensure the Latrobe Valley remains an energy rich powerhouse.

One of these opportunities is the development of carbon capture and storage technology.

Last week the International Energy Agency's World Energy Outlook 2011 reminded everyone of the importance of CCS in the world's future energy mix.

While coal is expected to decline in favour of alternative fuel sources, fossil fuels will continue to provide most of our energy requirements well into the future.

Accordingly, CCS is essential if we are to reduce emissions globally.

In Australia, Government and industry are still working on the demonstration phase of CCS.

The CarbonNet project in the Latrobe Valley is a good example of this.

If successful, it may be one of the world's first industrial-scale and multi-user foundation CCS networks.

The Latrobe Valley could become a world leader in CCS.

And, along with the development of new drying, gasification and liquefaction technologies, CCS might even open up brown coal to export markets.

It's our hope that, together with industry, the Latrobe Valley will continue to create high value products from your brown coal.
Conclusion

Ladies and gentlemen, the Latrobe Valley has undergone significant change in the last two decades.

As I hope is clear, this Government has no intention of abandoning the Valley during its transition to a low carbon economy – you have our full support.

The Government, my Department and I are committed to working with the local community to understand how this change is impacting on the region.

There's no point pretending it will be easy but, with hard work and cooperation, the Latrobe Valley will continue to be central to Victoria's future.

Thank you'