mnm v esi, page-34

Foz,

You make some bold/knowledgeable statements in the below quote that I agree with - they are worth reposting:
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"Exergen's and MNM's biggest problem it would seem is that it will be a very difficult process to acheive a mining development licence for a 1-2B tonne reserve in the heart of broader Melbourne's growth corridor.

It took Yallourn Energy at least 5 years to have an extension granted to their existing mining licence and they are within a zoned mining area. Whilst the mine exists at Bacchus Marsh and the licence to extract is obviously granted, the operations would be sub commercial for the usage that Exergen envisage and I dont think that they will develop this mine inside of 10 years if at all."
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It is a very strong selling point ESI have in the LYP partnership. ESI have coal - as much as they want of likely the worlds lowest ash/cleanest lignite.

The CXY situation in QLD highlights what ESI have avoided - and what MNM may yet face to some degree. I know where Id rather be. CXY have to fight various govt's, farmers, enviro groups, ill informed media etc etc. MNM may have to do some similar footwork.

Before Id become an MNM investor - Id be asking management - why couldnt Exergen secure coal in the LV (they tried all sorts of "tricks"... heavily publicised) where they could be assured of coal supply in an existing mining licence and within a zoned mining area?

ESI achieved what Exergen couldnt.

"In November Premier John Brumby was embarrassed by revelations in The Age that Exergen had paid for an exclusive meeting with him while its proposal was before the Government."

http://www.theage.com.au/national/investigations/brumby-cans-coal-projects-20091209-kk21.html

Why did Exergen have to resort to these last resorts? Why did Loy Yang Power choose Coldry over Exergens tech? LYP are the cream of the crop re lignite p/stations worldwide for many reasons.

Look at Loy Yang Power's CEO Ian Nethercote at the June signing ceremony picture/video. He is in the main picture with 5 high ranking Viet ministers/embassy reps...even the other Tincom hotshot Nguyen didnt make the pic...but Ian did. Why?

Obviously, LYP are deep deep in this deal.

http://www.ectltd.com.au/news/photo-gallery-victoria-coldry-signing-ceremony/

Clearly, Exergen would even now prefer to be in the comfortable LV with assured coal.

MNM has many positives - but without coal surety - they have nothing. Exergen had Tata etc onboard when they were trying desperately to get an allocation in LV - Tata was powerless then to achieve coal....how long will it take now in BM...if ever?

Corporately, ESI has failed s/holders, but in commercialising the tech, ESI have managed to jump some major hurdles without govt grants - gaining LYP/coal is a major hurdle MNM still need to jump.

ESI "looks" like a dog - no one here disputes that. But, although the Viets appear to be dragging their feet, they have systematically delivered in the past (eventually) and I see no reason why they wont soon deliver on the "imminent" SPV funding.

We soon expect the JV to be signed, then the $1.5 mill/shares to be allocated, then the SPV to be funded with portions of the "ten of millions cash down".

So IMO bottom line is - MNM have many hurdles - ESI have one - imminent Tincom $$$