re: Ann: CEO Presentation to MetroCoal Annual... So it seems that MTE has stumbled across a plan B or another option while waiting for a decision by Glencore/Xstrata on Wandoan.
If all goes to plan, MTE may well be the only ASX-listed company to be producing and exporting thermal coal (1-2Mtpa open cut) out of the Surat Basin (Goombi project) with the exception of New Hope without the construction of the Surat Basin Rail thanks to the close proximity to the Port of Brisbane and existing railway traversing it's tenement.
Not too shabby considering development and production of underground mining was slated for 2016-2017 behind the likes of COK and SMR who are all but reliant on SBR for their growth projects.
See most recent news - Massive Wandoan coal mine in doubt
It's not looking good for the SBR to be constructed in the immediate future and as the company has reported, not critical to MTE's development timeline assuming the SBR is built by 2017.
I believe COK and SMR could be in a bit of bind with their take or pay contracts with WICET and no way to get the coal there but I could be wrong.
The way things are shaping up, COK and SMR may be developing their projects around the same time as MTE's two other projects (Bundi and Columboola)
I believe it's time to accept the reality that Surat Basin coal developers will not become producers anytime soon but at least MTE/Sinocoal may just have a solution in waiting.
Note, Xstrata's Wandoan mine will take 4 years to construct so I cannot see Glencore/Xstrata letting others produce and export before them through the Surat Basin Rail.
Anyone else have a view?
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