Also according to the manager (Mison Mundin)," the shareholders would only continue investing on the condition of receiving the Taxcredits from the state government.
This would give the company survival, for a period up to a possible increase in the nickel price. "
It appears that this is the black mail creditors put on the Local Government to release the Tax Credits. Instead of forking another 11 million from their pocket, why not get that money from the Local Government to fund the Mine until Ni Pr recovers. Great Move. Infact, with the Mine on C&M, Mirabela Mineracao Asset is still intact therefore no real issues there of closing permanently. Just buying Time till Ni Recovers like the rest.
For me, shutting Down temporarily is even better than LPM as it put a Rest on our Mighty Crashers. The Creditors Knows what they are doing. There could be buyers out there but not the Right Price. If 45 million Reais
( Roughly 11 million US$) is enough to get them to a year and a half while Ni Recovers. Buyer's will only have to incur this loss to get it through Next Year when Ni Finally Recovers. There will be more Mines going C & M as itis a better move for Small Miner's. Unfortunately not Very easy to do with the Major Miner's. They will get Bankrupt soon.
Then the small miners will reopen and gets the benefit Eventually.
I am more concern about the whole Town of Itagiba and the other close towns relying
Heavily on Mirabela. Mirabela equates to 60% of the towns Revenues which is massive.
This is a big Pressure on the Local Government. They cannot afford to Let the Mine shut Down . For a mere US$11 million , it would be total lunacy for the government not to release this in exchange for the survival of Itagiba and its people. JMO.
MBN Price at posting:
8.3¢ Sentiment: Buy Disclosure: Held
