Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Ben Kalow with the Stanford Group.
Ben Kalow – Stanford Group
Could you guys give us a little more background on what caused the increase in coal prices for the quarter? Do you see it as a one-time thing where you were testing coal or is just an overall increase in the waste coal prices?
Timothy E. Vail
No, Ben, there’s no change in the price of our feedstock. It goes back to the commissioning phase that we burn a lot more coal through the process. We actually start the gasifiers up on a high grade coal and then shift them over to the low cost coal. And that will continue as we go through the commissioning process. But our design coal is exactly what we anticipated.
Ben Kalow – Stanford Group
And can you give an annual estimate for how much your coal costs would be for a completely commissioned facility there?
David A. Eichinger
Yes, Ben. The coal prices in the region are much higher but also, if you recall, under the energy fee that we charge to Hai Hua, that’s designed to recover that increased cost of coal. So to some extent it’s a pass-through. And also it doesn’t impact our gross margin line.
Ben Kalow – Stanford Group
Once you move on to the [inaudible] agreement?
David A. Eichinger
Exactly right.
Ben Kalow – Stanford Group
And could you guys walk through the timing of cash contributions to the different projects, maybe YIMA, Golden Concord, and CONSOL? How much you’ve contributed so far and then what the next step is and when you will do that?
Timothy E. Vail
Our contributions to the projects have been, we’ve been fairly careful not to, we don’t contribute the equity until the debt is in place and we can get you exact numbers in a follow-up, but they are less than $5.0 million, across the two projects.
Operator
Your next question comes from [Neal Malkin].
[Neal Malkin]
I have a couple of questions. The first one I wanted to see if I heard you correctly. You said, with your joint venture, partnership with North American Coal, you’re only going to make one of those two commercial? Did I hear right? Or is that not right, you’re looking to make both of them commercial?
Timothy E. Vail
You’re right, Neal. We anticipate that both of them will have favorable results for U-GAS technology but just prudence dictates that we only move forward with one additional project at this time. Certainly in the future we would look to move forward on the other mine site but I think at this juncture we are only looking to move forward with one project.
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