wec take off potential?, page-6

Bayan/KRL owns some large deposits of very wet but low calorific coal that is definetly not marketable on it´s own. IMO it is still possible that Bayan crashed the JV at the most vulnerable point with the objective to blackmail something more favourable for them "out of court". KRL could be the key for such a solution, e.g.

A) Blackmail a substantial holding (like Peabody has agreed in their JV structure with WEC), i.e. Bayan transfers it´s JV stake to WEC and gets WEC shares. Of course this can only be done with a new JV agreement (between KRL and WEC) to develop the Tabang/Pakar project in the future. Bayan is going to enjoy the upgrading succes via their holdings in both companies, even on WECs global platform.
or
B) Blackmail the IP via license agreements. Australian based KRL is going to take WECs JV share and enters into a BCB license agreement. White gets some cash and/or KRL shares. This would enable Bayan to stir up the indonesian coal mining industry on their own without major profit sharing.

With lots of constraints looming in donesia - limited foreign ownership of coal resources, export quotas, export taxes etc. - WEC would be well advised to re-consider their strategy in this crappy country. May be a licensed based business modell is better than none. It´s rather a question of shareholder value than honour and Low Tuck Kwong is not primate enough to throw the coal upgrading option away, IMO.