question, page-11

Santa I suggest you do some reading.

Part of the TERMS OF THE KARARA JV is that Ansteel as a minimum must BUY all of the ore produced - 8mtpa from initial production - INDEFINANTLY. This is a binding agreement between GBG and Ansteel, it is part of the conditions for Ansteel obtaining 50% of KML.

MGX was in a completely different situation:

- Large hedging loss
- Low cash reserves
- Many small customers who purchased their ore, who all defaulted. Some were actually IO traders.
- Had financial obligations it could not meet as a result of the above.

The placement kept it alive, and allowed the Chinese to steal a significant proportion of the company.

Ansteel is a large steel mill, not an IO trader. They are one of the largest steel producers. They will consume the ore, and produce steel during all phases of the economic cycles. They will not shut down like the smaller mills, nor trade.