Ann: Results of Annual General Meeting , page-48

Hi Poet,
As it happens I'm on a magnetite mine myself..
Magnetite is the highest grade commercial Iron ore mineral, so it's blended with other ores (Haematite for example) to increase the average iron content(Fe) grade to meet the customer's minimum Fe% requirement. It's also used as the media in coal washing Dense media Separation plants (DMS): and commands a higher value because of that ($250 per processed tonne).

Yes.. it's value to Vale will be significant on that practical/strategic basis (it helps them make spec on a disproportionally larger tonnage of exports than the magmetite itself). The deal reached may resemble a poker game as Vale could hold out for a better deal in the longer term as Avanco bleed for cash.. However, if ATP secures an offtake agreement (almost the equivalent of a forward selling hedge) then he might bring in contract miners and start mining to gain financial independence from the Vale deal. This is what I meant by backing himself into a corner and having to start mining soon. Seriously, I wouldn't be surprised if they elect to start mining sooner rather than later.. Let's not forget, Tony's a local now.. he knows everyone and he has the savvy to ingratiate himself with all the players who can be useful to him. Whilst organised and methodical, I know he'll be chomping at the bit to get started and I know he won't be afraid of what Vale or ANYONE
might thinks. He doesn't make mistakes: he isn't a fool. The only thing holding him back right now is the weather and the potential delays/environmental risk.. As soon as there's a break in the clouds you'll read an ann about mining having commenced..

BT