Late last year we entered in to negotiations with Palmer to...

Late last year we entered in to negotiations with Palmer to acquire more tonnes. Clearly he has said no.

If we did own our own leases that would not be an issue.

Every time we go to increase our access to further tonnage we can only do so if Palmer agrees.

There is a huge difference between owning a mining lease than having the right to mine 1 billion tonnes on someone elses mining lease.

A 24 million tonne operation would have been substantially more profitable than a 12 million tonne operation, particularly with 490 million shares on issue on a diluted basis.
That is why ARH have been negotiating for more tonnes now.