I think the deal would actually be a discount on the index price...

I think the deal would actually be a discount on the index price for PCI rather than a discount on any spot price.

Cokal and the Chinese have kind of worked out that $400mil is possibly going to be the value of the coal taking into account ups and downs, strength of the coking coal market etc

I'm of the opinion that for further capital raises/debt funding etc for developing the larger BBM mine this trading house would be willing to become a cornerstone investor. Multiple examples of that across the industry.

Lets see how it plays out.