Ann: Agreement for first South African coal fines, page-5

re: Ann: Agreement for first South African co... If one thing is for sure, it's that we will never see any mining activity at Lake Phillipson. There is no coal demand from regional utilities and coal gasification is way too inefficient, especially of sub-bituminous coal.
Even without any carbon capture and storage, production costs for syngas from sub-bituminous coal usually are close to $20/GJ which is increased by another 40% if pipeline quality shall be reached. This compares to Australian LNG wholesale prices of $14/GJ.
If you further consider the remote location of Lake Phillipson and the lack of infrastructure which would result in significant Capex would the deposit be developed, it's clear that there is absolutely no business case for any development.

It was for good reasons that WEC has written off $97.3m in impairment losses on SACL during FY2013.