Coal

[mhlld]

I ran across the following article this a.m........
I don't intend to be pumping, but I think it's relevant to the valuation of Sennen's 254mt Middlemount(Queensland) thermal and coking coal deposit currently up for bid by Ernst and Young, Perth Australia. It appears China Huaneng will pay $29.423 million for a 129mt(25.5%)stake in the following thermal coal deposit. Or .23cents per tonne in situ.
Middlemount's 254mt @ .23cents/tonne equals $58.4 million. The numbers appear to line up with the press release dated 7/5/2005.
http://www.sennenresources.com/s/NewsReleases.asp?ReportID=111461&_Type=News-Releases&_Title....

Article....

Chinese buy stake in Monto coal project
July 28, 2005 - 10:34AM
A leading Chinese power generator has gained exposure to the Queensland mining boom after taking a share in the Monto thermal coal project.

Macarthur Coal Ltd will sell half of its 51 per cent share of the project to the China Huaneng Group (CHG).

China Huaneng will pay $29.423 million for its 25.5 per cent stake in the central Queensland project.

The sale will be in two tranches - $12 million payable on the completion date and $17.423 million following completion of the Stage 2 feasibility study in two to three years.

Macarthur Coal chairman Keith De Lacy said China Huaneng had outstanding qualifications as a partner in the Monto Project.

"Macarthur Coal looks forward to working with China Huaneng Group and the other Monto joint venture participants in completing the Stage 2 feasibility study as soon as possible," he said.

Macarthur purchased its stake in Monto from Burnett Coal Pty Ltd in 2001 for $10 million in cash and a further $10 million worth of Macarthur shares.

The latest analysis of recoverable thermal coal reserves and resources at Monto were estimated respectively at 22.6 million tonnes and 518.7 million tonnes.

As part of Macarthur's deal with China Huaneng, the other joint venturers in the project must agree to a revised development plan.

This involves an extensive exploration program and major feasibility study for up to a 10 million tonne per annum operation.

The feasibility study will involve the establishment of a trial open cut test pit mining operation.

China Huaneng is one of the top ten power companies in the world and the largest power generator in China.

It has a total installed generating capacity of 40,990 MW, representing approximately nine per cent of the total installed generating capacity in China and plans to triple this by 2020.

© 2005 AAP

http://www.smh.com.au/news/Business/Chinese-buy-stake-in-Monto-coal-project/2005/07/28/1122143938327...