Ann: Shareholder Update - India Activity , page-15

you will probably find that they have most likely recieved a range of figures, hence your $20-25m.

Capital intensity $100..

as stated in the ann - its the key number in the minds of coal plant buyers and financiers...its basically the development cost through which these guys can do there comaprison pre- Finance

Mr Xs plant is 75m and it produces X amount of tonne
Mr Ys plant is 40m and it produces X amount of tonne
Mr Zs plant is 50m and it produces X amount of tonne

Mr Finance looks blankly and replies....can you just give me the bloody cost per tonne so i can get a quick answer i.e the cost of installing the plant over the output capacity of that plant in 1 year. you quickly get the answer of which is cheapest to install.

actual cost per tonne over plant life is different Aries.

example and roughly - the capitial intensity is base on the inital development cost divided by output in the year ( 1 YEAR ), over teh plant life well then divided by say 20 = $5 i.e the plant over the duration of its life will contribute $5 in cost to the overall cost per tonne

hope this helps