impacts of unexpected delays in the tender., page-15

Hi tobyjack.

Am I right in saying that the Chinese would not supply funding or sign off-take agreements Ect, until Conventions and Mining Permits were obtained. Going by what we were told with the Hanlong case.
I don't think Afferro has Convention or Mining Permits in place. I don't think they Afferro even have a Reserve Resource in place.
Afferro has largly got lower grade iron ore. The bulk of their iron ore will have to be beneficiated to Concentrate and Pellat feed. So straight to the most expensive iron ore processing to start with.
Looking to do it that way will have to be a much longer and more expensive way to start production.

Afferro are (Way behind SDL) in being able to get into production.

Afferro/IMIC will have years of studies for Environmental, Rail and Port ahead of them.
The only way they could do it any earlier is to JV with SDL and start production later than SDL even fast tracking their Projects. May do it in time while SDL or whoever build the Rail and Port Infrastructure.

It would take them at least a year to do the Environmental Studies. A year at least to do their own Rail Study.

Where are they going to build their Port?
Not many spots that are suitable like SDL's Lolabe.
Port studies would take them over 12 months.
Fish,Reef,Forest and Mammal studies. Plant Studies and so on.

Why would The Cameroon Government want or need TWO Iron Ore Port Terminals on their coast line next to each other?

Two Rail Corridors going through Very Environmentaly sensitive areas,I don't think so.

Their only quick solution is through SDL.

Regards
Westcott.