mnm & loy yang

From todays ann:

'These new applications are strategically placed, linking the company’s existing licences together, with one area adjoining the Latrobe Valley S7 Exempt area within only a few kilometers of the Loy Yang Mine (Figures 4 & 5).'

Why are MNM highlighting that their brown coal tenure now extends almost to LY's front gate?

The only divide between MNM's new Callignee tenement and LY's bc ground is what looks like a 10 sq km section of the S7, shown in blue in figure 5.

Is that piece of dirt exergen's S7 target?

Given the obvious symbiosis between MNM and exergen that innocuous 10 sq km allocation would, in truth, be an iceberg tip, with 60 times that much bc ground hanging beneath it in MNM's name.

This is my 'MNM as exergen coal warehouse' theory, and nothing they have ann'd today detracts from my belief in it.

Exergen said in March this year that they intend to apply for a relatively modest 1 billion tonne S7 allocation:

'Coal technology firm Exergen says it will bid for up to 1 billion tonnes of brown coal for export to Japan and India and for use in a new demonstration power plant.'

http://www.theage.com.au/victoria/mining-companies-prepare-brown-coal-bids-20120320-1vi2v.html#ixzz1yoMFL6dn

10 sq km in that part of the S7 would hold about 1 billion tonnes based on the known LY reserve at its adjoining 45 sq km tenement.

I always wondered why exergen would not apply for a far bigger slice of the S7 given allocations are a once a decade event, and may never happen again?

A billion tonnes would at best produce only 500 million tonnes of BCE.

The infrastructure spend required to unlock the LV for coal export would demand a much larger resource for the funding required from tata.

That question was answered today.

With MNM in their pocket that 10 sq km adjoining LY would, in truth, provide a secure 600 sq km supply of brown coal to exergen. Enough for 100 years+ of energy production for India.

And how much coal is in MNM's name in that lot?

Dunno. But it is a frighteningly large amount for a $20 million MC company.

DYOR