broker reports, page-5

DJAY, the information i found was that the company want to extent its mining operation from 5 years to seven years and (and up to 10-12 years). Indeed, current lease should be at least 4 more years. The company indicated that the environmental impact is misleading. I am in no doubt that the lease will be extended, if operation cease, more than half of Island's population will be diminish and the consequence of this is far greater than those dumb environmentalists who fight for the existence of the red crabs. The simple question to me, "is the prosperities and well-being of Islanders more important than those red crabs or not?" You tell me the answer. The company is already looking forward and seeking to obtain more land to extend mining operation to more than 10 years. Current operation is 700,000 ktpa which is equivalent to $280mln in revenue(assuming Phosphate price of $400/t), proportionally we can distribute these revenue to:
- A portion of this revenue paid to the Islanders who work for Phosphate Resources.
- Maybe 20% of taxes go to the goverment.
- 20-30% toward mining development/expansion/other cost.
- And the remainders (20-30%) should be the net profit attributable to its shareholders (CII or us).
After all, the significance of Island's phosphate mining are enormous, the environmental report is misleading and it is a joke if mining lease do not extent.
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FYI:
In 2006 Phosphate Resources Ltd sought environmental approval for additional mining lease on Christmas Island under the Environment Protection and Biodiversity Conservation Act 1999. In May 2007, the Minister for the Environment and Water Resources announced the decision not to grant environmental approval for a proposed expansion of phosphate mining on the Christmas Island. The company has lodged a challenge to the decision not to grant new leases in the Federal Court of Australia. The current mining leases on the island held by Phosphate Resources Ltd are not affected. However, granting the additional mine leases would extend phosphate operations from five to seven years, up to 10-12 years.