breakout, page-22

An excellent post no doubt and probably spot on. However, I'm backing the outsider route as Bayan are thinking money here and White Energy are as well -- MD Brian Flannery has said it is not feasible to move the plant.

I think it means waiting until about 2014 before the Tabang plant is really ready for this market and it needs moth-balling until then.

So Bayan will be allowed to sell their coal and make a payment to WEC allowing them to drop out of the Tabang agreement and White to see the plant is maintained.

To be honest, both sides can really see it's not worth running the plant until upgraded coal prices hit around $140 per tonne. Nonsense to produce it, from a business point of view, at a loss.

I expect WEC to find a new partner to supply the coal by 2014 and Bayan to receive royalties on coal produced.

Nothing much in it for either side now and WEC will concentrate more fully on The Lake Phillipson supply of coal to Adelaide from the Ingomar trial pit.