opr and crosslands feasibility studies, page-41

The obvious problem that MMX has now is that with Sinosteel indicating that they cannot support the BFS in regard to Weld Range. Which makes OPR unviable and therefore at this time difficult to fund. It is difficult to fund any project at the moment without significant cash flows, and MMX doesnt have signicant cash flows for the Jack Hills Project, let alone OPR. In saying that, everyone wants the midwest opened up, so at some stage it will happen. Sinosteel have a 5.8% position in MMX, so it has an each way bet which indicates that the mid west will have infrastructure, and they will be a part of it. All of this posturing is to allow Sinosteel to negotiate an improved position in the scheme of things. Well done for them,MMX has an obligation to ensure that it can salvage a part of the infrastructure for its role in the process to date and concentrate on getting Jack Hills up an running. The viability of OPR is reliant on all the proposed participants not just Sinosteel or MMX. MMX management would be negotiating with stakeholders as to the who ends up with what stake which would ensure the project continues to progress. The SP will start to recover when these plans are clear and a business model including a costed scope of works are in place. Mitisbishi will not have any problem with financing the project if the project is fully supported by all the stakeholders, so when that balance has been reached the real work can begin