Ann: Karara Operational Update , page-17

"It is KML’s intention to maximise the utilisation of the dry tailings system in order to maintain environmental best practice. The additional wet tailings facilities provide flexibility in the circuit to bypass the tailings filters under certain operating circumstances to maintain plant throughput in a controlled manner. The review identified a medium-term requirement to increase tailings filtration capacity, which will be needed by the time the two tailings dams have been filled. An engineering study will establish the requirements, schedule and cost with respect to additional tailings filter capacity. Expenditure in 2014 will be limited to the engineering study."

The way I read this there could be additional medium term cost over and above $123.6 million.

I think they are saying that environmental best practice is going to make it hard for them to keep building wet tailings ponds after both are filled in 2.5 years time. So they will need to increase tailings filtration capacity, with the costs this year limited to the engineering study only. Who knows how much this additional work will cost KML in the future. The tailings dams just kick some of the costs down the road by the sounds of it.

Might be wrong here, but that is the way I read the announcement.

SilentO