working of the China first feasibility study as a base case, EER...

working of the China first feasibility study as a base case, EER will be producing for under $50p/t - this is why Noble haven't budged one bit and are backing them to production.

China first
Table 1.6: Operating Cost Estimate (AUD)
Operating Area
Cost
(AUD/Tonne)
Underground Mining/ROM Tonne = 10.89 to 14.82
Surface Mining Cost/ROM Tonne =18.80 to 27.00
Average Mining Cost/ROM Tonne = 13.71 to 20.35
Raw Coal Handling/ROM Tonne = 0.50
Coal Preparation/ROM Tonne = 2.00
Tailings and Rejects Disposal/ROM Tonne = 0.30
Product Coal Handling/Product Tonne = 0.25
Product Coal Cost Loaded on Rail (FOR) = 23.18 to 32.41
Rail Transport/Product Tonne = 4.54
Port Handling and Shiploading/Product Tonne = 1.25
Royalties @ 7% of AUD 100 Sell Price =7.00

Cost per Tonne Loaded (FOB) = 35.97 to 45.20

http://www.resourcehouselimited.com/hongkong/00394/announce/6/EN/20110530%20-%20Global%20Offering_Offer%20for%20Subscription_EN_FHq6brrAUDGq.pdf

EER Operating Cost Estimate
20mtpa

Surface Mining Cost/ROM Tonne = 18.80
(close to surface may be cheaper then this)
Raw Coal Handling/ROM Tonne = 0.50
Coal Preparation/ROM Tonne = 2.00
Tailings and Rejects Disposal/ROM Tonne = 0.30
Product Coal Handling/Product Tonne = 0.25
760 km Rail Transport/Product Tonne = 10.89
(added 50% to use waratahs line, also added 285km)
Port Handling and Shiploading/Product Tonne = 2.50
Royalties @ 7% of AUD 80 Sell Price = 5.60

Cost per Tonne Loaded (FOB) = 40.85