A poster noted that the Kalahari railway line will be ready for operation in five years. This is not a negative as it will take this long to bring a major open cut coal mine from exploration to production.
From the same article:
"The line is expected to be completed about a year after the [CIC] Mmamabula energy project comes on stream, Scholtz said."
The AFR project is around a year behind CIC so any large Sese mine would come into operation at the time the line was available. Importantly as an advanced exploration project with JORC in Q1 or Q2 2011 it would put AFR in a good position to secure an allocation on the railway line for transport and the port for loading.
The fact that the production cash flow from the resource is 5 years away discounts the current market value of the thermal coal which is around $100/tonne. However, a figure of 30 cents/tonne is a 99.7% discount for a project that appears much easier than CIC.
A poster noted that the Kalahari railway line will be ready for...
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