a bar too high, page-5

Well reserves are just reserves until you are able to produce them.

So Waratah coal is currently a stagnant project, no infrastructure, no port, no mines and as yet not enough money to kick the project along, that was the whole point of raising the funds in Hong Kong. Worth $1 billion, I don't think so.

Then you has the expensive magnetite projects, if you look globally you can see that there are massive new volumes of haematite about to come on line, BHP and Rio enormous expansion in WA, Rio and the Chinese in Guinea on-line by 2014 (Guinea as big as the Pilbara by the way), Vale in Brazil. So what is the price of haematite in two years time, my prediction half the current amount and still the big three miners will make massive returns, marginal producers and want to be producer will be hurting big time.

So let look at the Citic Project, its late, it has had huge cost over runs, and as yet still unproven. And we still haven't a clue on the actual real cost per tonne of Fe ore is going to be from Citic project. I wonder if the Chinese really do, I bet there original profit projections are toilet paper.

Then following the ResourceHouse fiasco in Hong Kong, the lingering concerns on Citic project working and being profitable, and the new iron ore capacity about to come into production can you really expect ARH to get any traction in getting it's project over the line?