Depends in what region you are comparing prices, but keep in mind coal pricing out of mongolia to China is significantly lower than seaboard prices here in Australia. If you are looking for compariable prices of soft coking coal out of mongolia i suggest you have a look at MMC (Mongolian Mining Corporation)as they have semi hard coal which will give you an upside of pricing. A compariable coal comparison of semi soft would be South Gobi.
Extract from South Gobi Quaterly "Total sales for the quarter ended March 31, 2011 were 0.45 million tonnes with an average realized selling price of $50 per tonne" This is an average including contracted price agreements and spot prices.
http://www.southgobi.com/i/pdf/2011Q1.pdf
Agree with your thoughts on cost savings but alot of work still to be done on proving up the resource. I personally will look to re-enter once the picture is clearer.
GB
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