re: Ann: Agreement for first South African co... I see your...

re: Ann: Agreement for first South African co... I see your point on the costs involved at Phillipson because CNOOC have withdrawn from the Arckaringa agreement with Altona Energy, even further north than Phillipson. If CNOOC cant afford it then that is that really.

The Phillipson Lake is non-permanent and although there are already two places to wash the coal it requires a jet powered wash to remove the high amount of sodium in the coal.

The advantage of coal from Ingomar, South Phillipson, is that a trial pit is in place and coal storage facilities. It was proved in 2002 that the coal is good enough for use in pig iron production and Southern Power Stations have already tested the coal up to 2010.
It still appears possible that WEC will obtain a contract to supply at least one power station.