incredible coal valuations, page-2

Surely all these recent mine closures will eventually reduce supply and lower future labour costs as workers realise that a lower paid job is better than none.

Exactly. I know a lot of coal geologists (I used to be one, now I'm in gas) and they have just about ALL been laid off. One coal services company I know used to have 50 geos, now they have 5. Another has just laid off 60-odd. Geos who came out here on sponsored working visas are heading home because the company has just terminated them.

It'll be similar for mining engineers, managers, HSE people, enviros, sparkies, fitters, operators, you name it.

One of the mines that just shut is Clermont, which only opened in 2008 and is mining a 45 metre thick seam. 600 staff got laid off. It's not just the low volume, 30 year old mines like Norwich.

The other major effect of all this like you said will be to cut supply, particularly of the met coals, which will be an advantage for Baralaba.

If Wandoan gets put on ice like I'm expecting after the Xstrata-Glencore merger, COK could take another hit because it'll throw the whole SBR into doubt, but realistically, that will represent a buying opportunity IMO, because Baralaba's infrastructure is already assured and the economics are looking pretty good if met coal prices rise.

Feeling more positive about COK than I have for a while, but it still all comes down to how they are going to fund the expansion...