Ann: New Mining Convention and extended Mining Permit for Syama, page-4

Sounds like very good news.

But I would like to be able to fully compare the requirements under the previous convention versus the new convention. There could be some changes that are less favourable - eg

1. Has the govt royalty rate gone up from a lower level to 6%? I thought they paid around 4-5% previously, so this would offset the tax rate reduction. Tax is only payable on profits, while the royalty is paid irrespective of profitability.

2. Any increased social obligation costs. This could be extensive.

3. Changes to the operation of tax provisions affecting depreciation and deductibility of interest payments etc.

Note that the convention extension was only agreed after the previous one has expired, so there must have been some serious issues holding things up. I have been concerned about the delay, and now feel a bit more comfortable.

I hope the analysts grill JW for more details during the quarterly webcast this month.

loki