cash position end of year, page-5

I read somewhere that Tony Kiernan suggested over 12 months ago that BCI look at buying a larger part of the joint venture. Obviously these things take time to come to fruition.

I feel that Mindy Mindy (50% FMG & Consmin) has probably also been in discussion for quite a while and that the deal being negotiated will reduce Regent's influence/shareholding in BCI. Regent has seen the writing on the wall and decided to sell out of BCI.

FMG has been trying to get access to BHP's Newman line since god only knows when. BHP won't ever let it happen. So, Mindy Mindy remains stranded unless an alternative means of transport is devised.

I've posted some information below giving some of the background to Mindy Mindy. Some of it may be out of date, some may still be valid. If anyone has more up to date info please post it.

I don't know how the financial side will work but, here's my premise:
BCI operate the mine, the ore is trucked 85kms around the south eastern tip of the Fortescue Marshes to Christmas Creek. There it is beneficiated (possibly blended) and railed to Port Hedland.

It was always FMG's plan to build a benefication plant, but with BCI wanting to upgrade their low grade ore it makes sense to build one plant to service both mines.

Just my thoughts. Comments/criticisms welcome.
------------------------------------------------------------12 MAY, 2006
CONSMIN ANNOUNCES FEASIBILITY STUDY FOR MINDY MINDY IRON ORE

Consolidated Minerals Limited (ASX: CSM, AIM: CNM, FSE: CMN) today announced the commencement of a full Mining Feasibility Study on the proposed development of a 5mtpa iron ore operation at its Mindy Mindy Project in the Pilbara region on Western Australia, to be conducted by its joint venture partner, Fortescue Metals Group Ltd (ASX: FMG).
Consolidated has reached agreement for Fortescue to assume operator and manager status of the Mindy Mindy Joint Venture during this phase, with Fortescue to conduct the Study using the same in-house development team that completed the recent Mining Feasibility Study on its Cloud Break and Christmas Creek iron ore deposits. Once the Study is complete, Fortescue will return operation and management of the Joint Venture to Consolidated for the mining phase.

It is envisaged that the Mindy Mindy development will dovetail with Fortescue's proposed infrastructure business for stranded iron ore deposits in the Pilbara region, with Fortescue to provide an infrastructure service to deliver Mindy Mindy ore to market on competitive commercial terms once a decision to mine has been made.

Fortescue has announced the completion of a Definitive Feasibility Study on this infrastructure business, which is planned to initially facilitate 45mtpa of iron ore exports from the Pilbara region, with subsequent expansions planned to 60mtpa and ultimately 90mtpa.

An initial iron ore resource of 44.8 million tonnes grading 55.2% Fe has been defined at Mindy Mindy, covering approximately one-third or 4.8km of the total 16km strike length of the channel iron deposit. This includes a higher grade component, at a 56% Fe cut-off, of 15.5 million tonnes grading 57.1% Fe, which will form the initial focus of the Feasibility Study.

The joint venture partners intend to carry out additional drilling along the remaining 12km strike length of the deposit in parallel with the Feasibility Study. Once the entire strike has been drilled to resource intensity, the Mindy Mindy resource is expected to be substantially upgraded.

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ConsMin flags Mindy Mindy cost Wednesday, 10 May 2006
Ben Sharples
CONSOLIDATED Minerals has estimated it will cost around $A30 million to bring its Mindy Mindy iron ore joint venture with Fortescue Metals Group online and has indicated its "preferred approach" is to sell the project ore at the mine gate.
http://www.miningnewspremium.net/StoryView.asp?StoryID=58482