Ann: NCZ Welcomes Rehab and Financial Provisioning Legislation, page-6

A further comment to consider, there are two types of reclamation bonds that I am yet to understand within the new QLD legislation and I would be grateful if anyone can accurately explain it. Mines must currently pay a cash or bank guaranteed bond to the Govt that is equal to the maximum disturbance rehab cost. So I assume the Century one is circa $200mill. However the Govt is also responsible for a lot of previously abandoned mines and I think the new legislation is focussed on all current and new mines having to now additionally contribute to a new pool of funds to allow those mines to be rehabilitated ( I might be wrong on this but don’t think so). So this is a new and additional cost. The Qld Resource Council QRC is the big miners most especially the coal guys and their rehab cost is massive. They struck this deal. So the legislation adds more cost and in exchange offers a third way to pay for it aka an Insurance bond. Now ask yourself what the premium for the insurance bond will be especially noting the state of risk acceptance of insurance companies these days and the way they will consider each mine by type and each company by capability. I work with multiple mine clients in this rehab cost space and would dearly like to know the detail on all this. Krum