4 kms from vale worlds biggest iron ore mine, page-14

Thanks BW,

Have included your important No 1 query as below, and now emailed... but think will not push my luck in trying to get drilling and expenditure plans too. These are probably pretty fluid in any case.

The questions will be taking up their important time so anything at all in reply from AVB will be appreciated. The main thrust is to see about these past fascinating projects because they have value, and the nature of the copper plant they intend to build and when.

This week should see the assays emerge I "anticipate" (love that word!). Then the fun starts. These queries are kind of in the nature of important unanswered questions and really do affect company value I believe..


In the 2009 July Quarterly Activities, AVB said "The regulatory process for permitting the project has commenced with granting of a trial mining license anticipated in early 2010"

It is now August 2010 and the Trial mining permit has not been forthcoming. The latest information from the Quarterly says Trial Mining license "anticipated" before end 2010.

So the Permitting process to mine has apparently gone from 6 months to an anticipated (but not guaranteed)18 months. There has been no explanation as to why this very critical factor has been incorrectly forecast. At least knowing a reason is some comfort for shareholders, even if it does not alter the fact.

The implication for other AVB Carajas projects is very serious indeed obviously, if the permitting process can be expected to take up to 2 years from commencement.

Q. Could some light be shed on the permitting process and, learning from this experience are there any Carajas permits than could be now applied for in anticipation of mining such that vital project time, in the order of years, can be saved.?

Cheers, PP