Ann: LCK Signs Heads of Agreement to Commence ISG in China, page-257

Pie

I will not be up to the government to define commerciality on this project, but the company (LCK) and the incoming JV partners (and potentially bankers). I'm not sure why people are concerned about the government and their view of commerciality.

The PRMS reserve process also has a commercial target, where 2P reserves were defined, under the assumption of a power project BTW, which adds a level of an independent review on the rates of return for the project. The IRR for the project (gas project and fertilizer) was also recently published, which gives a feel for this commercial objective.

Ultimately, the government wants royalties (amongst other things) from these projects, and the royalty payments are not subject to commercial project returns. They are off the top.

Hope that helps.

AL