f111
Tincom have an established customer base. They are presently supplying 140m tonnes of coal/pa.
They want the pellets for 2 reasons.
1. Pellets will be cheaper than black coal.
2. Over the next 15 years black coal supply will not be guarranteed. (Brown coal will be accessible for the next 500 years given the reserves in Australia, Greece and Germany.)
This is the main reason why Tincom wish to sign a 50 year deal...they want security.
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