gindalbie epa approval, page-26

Incentive was always there, Ansteel owned 50% of Karara and 12% of GBG prior to this proposed placement. Using Karara ore was always going to be significantly cheaper than buying it from Vale etc. This placement just further ensures control of supply and blocks any takeover for that supply. Although this is also a sound investment for Ansteel as they obviously believe it will be viable.

Ramp up of production will not occur until the GFC is over and the world's largest economies are out of recessions. Hence the expansion of 12mtpa on initial production was delayed. However I believe most the infrastructure for Karara is being built for 20mtpa capacity which suggests the expansion of Karara will defiantly occur within a few years of Karara starting up/Oakjee being built. I assume the GFC should be well and truly over by this time.