China, page-4

The pollution is absolutely abominable. It covers the whole country. Take a look at the size of the country on the map. We had only 2 semi-clear days. This was after rain and by lunchtime it was back.

Don't know if steel making is the cause or not. There are many coalfired power plants. Lots of brickworks as well. Both of these use a lot of power. The bigger cities are enormous and must take extraordinary amounts of power to light up at night and lit up they are. High voltage power lines criss cross the country. My way of thinking they need to go nuclear. With the amount of power they are using they currently don't have any other options.

There are 6 million cars alone in Beijing and it is not a big city. They are supposed to alternate days according to your numberplate but due to face most people ignore this and pay the fines. We thought they had millions of speed cameras at first but they record number plates. The place is choked with cars and going to get much worse quickly. WE were in traffic jams mostly everywhere.

The people don't like it and that is why they all want to buy in Australia. They don't realise Australia is mostly desert and cant support a large population. Food grows nearly anywhere we visited.

Now Im no expert here but from memory KML is going to pelletise the ore which removes the need for sintering a big power user and I would assume the higher the grade the less you need to smelt for the same quantity of iron so less power.

Will this have any effect on KMLs ore? I cant see it in the foreseeable future. W e are in trouble thru debt and now giving Ansteel control as well as the plant being badly designed and built. Cant see any of those problems going away soon.

Ansteel have control and access to the ore. Cant see why they would want to buy us out. They aren't interested in dividends. Just means buying more debt.

Hope this answered your questions. Again my views only. Don't wish to doom and gloom but have tried to present some reality.

Cheers
Gmac