Ann: Acquisition of Velvogen , page-37

A quick look around to see if CVI have done DD on costings. The $23m figure it appears may have been plucked from the air. The ann today has the 600,000 tonne/year plant costed at $23m yet an Indonesian company called Bayan are building one with half that capacity for 3 times the cost.


CVI : 600,000 tonne/annum = $23M
Bayan: 300,000 tonne per annum = $68M


If we used the same ratio the CVI acquisition should cost $136m. Today's ann also states that certain conditions must be met one of which is the plant has to run at 100 tonnes per hour, continuously, for 3 months. If that continued over a full year that would be 876,000 tonnes per year of production. Breathtaking really!



THE COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

Trade and Investment News , 29 June 2009

MINING
Bayan to spend $68M on first coal briquette plant

Publicly listed coal producer PT Bayan Resources will start producing briquettes from its new upgraded coal plant at a rate of 300,000 tons this year, The Jakarta Post reported.

"The volume has been included in the sales volume target for this year," president director Chin Wai Fong said.

He said the new plant would be the first one in Indonesia, explaining that the technology would enable the company to process low-grade coal to make it more valuable. The $68-million plant would start operations in the third quarter of this year.




And with the 12 odd mill loan current to fortitude to be used as an offset. I suspect that the $12 mill has long gone and this is just a ruse to cover the tracks if any part of the agreement does eventuate.