monash capital and deals, page-47

With ESI if the current Government approach remains IMHO there is nothing to worry about

yes agree arion and there is "save alcoa at all costs"and the network of employment directly related to the industry including / Loy Yang Power 26 year contract.


10 million ton coldry plant answer.

20 million tons of carbon is emitted by loy yang power it will have a tax bill of $460 million come july 2012.
of which Alcoa will pay 50%.

5% reduction national target. Coldry will reduce emissions in existing infrastructre as a shandy mix,as it can reduce emissions up to 60%.
10% of 20 million is 2 million tons so coldry to offset LYP national target of 5% only needs A SHANDY USE OF 2 million tons.

the next 8 million for export of a 5800 calorific value BCE with low ash /premium black coal substitute for japan and china plus the water cost benefits to industry.

at $20 TO $25 TO PRODUCE, then export costs add estimated $30 to $40 per ton .End product delivered under $65 per ton.

equivalent black coal at todays price $100 to $110 dollars
margin of $50 per ton estimate.

8 million tons at $50 / 400 million dollars,
carbon tax bill/ water savings for Alcoa and LYP offset.

you may ask but who will pay to build it???
800 million dollars available now from fed gov with a 1 to 3 $$$$$ ratio contributions,

Alcoa have deep pockets..and a contractural obligation to fulfill in 2014.Carbon Reduction Agreement.

http://www.agl.com.au/Downloads/ASX%20-%20Loy%20Yang%20Power%20FINAL%2010%2003%2001.pdf