As publicly stated SMR are looking at a number of ways to bring...

As publicly stated SMR are looking at a number of ways to bring down FOB costs for the range including bypass coal (clean and not requiring washing), mining to a thinner seam horizon, as done elsewhere in the region and sharing infrastructure. Having said that SMR's FOB estimate is pretty much the same as new thermal coal mines planned for the Bowen Basin.

The Gallilee players still think they can come out a bit cheaper but these numbers are drifting up as more work is being done. Reality is setting in that they are a long way from port, after the initial relatively efficient duplication of Abbott Pt future expansions will be as expensive as DBCT or WICET or anywhere else and standard gauge rail isn't a silver bullet.

New infrastructure is expensive and I think it's fantasy land to think thermal prices are coming back to historic levels in the face of a major step up at the marginal end of the cost curve and record demand.

It should be noted that even in the face of dampened demand out of Japan since the earthquake spot prices have held up above US$122 per tonne from previous highs of around $130.