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The announcement released by MGX this morning has brought home to many that the Asian Steel mills are applying the brakes in a big way. Is it due to uncertainty in forecast or something far more sinister? Never the less very dissappointing for the wannabe producers emerging in the sector. In the medium term production planning should be taken off the table, cash preserved and spent on drilling and proving up additional reserves, in these troubled times the only risk free way to market is via one of the majors.

MGX down 33%.