Costs to MineThis does not include ship loading, or washing- ie coal preparation plant. NPV based of $51 tonne/ coal
Cash operating costs were estimated based on the mine plan, equipment selection, workforce estimates
and other pertinent factors over the life of the conceptual mine plan. Transportation costs including rail to
the Sydney port and vessel-loading fees have also been estimated. Table ES.3 summarizes the total per
tonne cash costs in 2007 dollars over the mine life. The information made available to Norwest has
enabled calculations and estimates to be made to an accuracy of ± 30%. Total cash costs for coal
production, transportation to the port and loading into the ocean-going vessel, and royalties are estimated
to be $23.13/tonne. Under base case assumptions, the project provides a net present value (NPV) of $195
million or a 16% internal rate of return (IRR) on an after tax basis, based on the pricing schedule provided
by XCDM.
TABLE ES.3
TOTAL CASH COSTS
$/TONNE
Royalty $ 1.18
Mine operating $ 16.70
Transportation $ 5.25
Total cash cost $ 23.13