Hard Coking Coal, page-28

Expect the contract with the mining contractor is a take-or-pay one, they usually have to be in mining because of the large investment in equipment by the contractor. Having to pay for mining with no offsetting income is not a viable option. Expect there is goodwill between them and mgt. of BCB, but business is business. We are not party to the detailed terms of the contract.

That said, hard coking coal future price ex Australia is currently about US$300/ton. Deduct about 25% from this for this type of coal which is not coking but used in steelmaking indicates a price around A$ 335/ ton right now. The biggest factor in economics of Bluff now is how much coal they can extract per month. Think the weather has been OK, there were water problems last half year.