Yes Surat Rail JV is dancing to Xstrata's tune and if COK aren't...

Yes Surat Rail JV is dancing to Xstrata's tune and if COK aren't in a position to commit to it, presumably it will go on without us.

I don't know what the Surat opex costs will be but hopefully around $50/t FOB port. Obviously with the much higher costs associated with the boom in materials and labour, they won't be able to match the costs of the early 2000s but hopefully that will be comfortably offset by economy of scale at higher tonnage and decently higher coal prices.

It's Xstrata's Wandoan mine that is going to open up the Surat. We need to be going along for the ride to take advantage of it, but that is going to require significant funding. I can't see COK meeting its current timetables unless there is a significant turnaround in sentiment.

Anyway that is further in the future. If we can't get the Bowen expansion funded first it's a moot point because this company won't be in any position to get the Surat into operation. The capex for Surat is going to make the Bowen capex look like chump change.