10 mill tonnes pa = $350 mill capex. Coldry cant compete with...

10 mill tonnes pa = $350 mill capex. Coldry cant compete with that....even in China. ATM its about $350 mill in LV (60% moisture) to build just 2 mill. Once the DFT is done, and allowing for IM 35% moisture, it could be down to $200 mill for the first 2 mtpa and decreasing with economies of scale.

Highlights the importance of Arups work in finding cost savings in the capex.

However - opex must be VERY expensive judging by the below.

"CoalTek's patent-pending technology converts low-grade...into high-grade "clean coal" at, or below the cost of high-quality raw coal."

"The CoalTek process converts low grade, “dirty” coal into high grade “clean coal” at a cost competitive with the highest quality raw coals."

"In China, the plan is to zap low-grade lignite and sub-bituminous coal with microwaves to evaporate water inside it. The process could as much as double the value of low-grade coal to $60 per metric ton or $70 per ton, the company claims."

Coldry is $30...in China probably $20. That waste heat is the key...rather than microwaving costs. Massive opex winner is Coldry.

"The CoalTek process itself is environmentally compliant. All byproducts are captured, filtered and separated, meeting the same Environmental Protection Agency standards as agricultural water for disposal into holding ponds."

Seems there is a large cost in processing the waste water too!

It is a massive difference it seems in favour of CoalTec re capex...but an even greater dif re capex favouring Coldry.

The Chinese are going LOVE Coldry imo....BUT the above highlights the importance of reducing the capex.

http://www.coaltek.com/clean.html

http://www.techjournalsouth.com/2011/04/georgia-based-coaltek-shovels-in-2m-for-clean-coal/

http://blogs.wsj.com/chinarealtime/2011/12/01/chinathe-clean-business-of-microwaving-coal/