Reading between the lines, the Chinese are going to develop much...

Reading between the lines, the Chinese are going to develop much of what they need to suit their market. But that being said, it is a huge market and it is important to realise that while the Indian market takes off, countries like Korea, Taiwan and Japan areis also sourcing resources from Asian counterparts as an alternative to Australia. Cheaper, faster and easier to deal with is the general Asian sentiment now.

Xinhai will immediately commence comprehensive sample testing from samples already in China to finalise the process flow and equipment requirements to produce a routine operating concentrate grade ranging between 63-65% Fe, targeting 65% Fe. (sounds pretty confident and achievable)

Xinhai engineers will be on site in India in the coming weeks to review existing operations. (they wouldn't be there unless boxes already ticked for production)

The results of the Xinhai site visit and testing, will then flow into the upcoming expansion projects as outlined previously in investor presentations, whereby, Xinhai as an EPC contractor will have the opportunity, based on acceptable commercial terms to:

1. Build an additional 200,000 tonnes of concentrate capacity, with commissioning targeted to commence in July 2017, subject to the above,
2. Build a 1 million tonne concentrate plant, with commissioning targeted to commence in December 2018,
3. Build a 1 million tonne concentrate plant, with commissioning targeted to commence in December 2019,

I think this part is quite telling of future expectations that delivery will have to meet. The Chinese are fussy and like the Japanese, look at every financial angle before signing off on anything. They also make sure a project is most favourable to them. I believe financing is already sorted and this is just the prelude to bigger things.

Xinhai will also optimise the existing beneficiation plant to produce a routine operating concentrate grade ranging between 63-65% Fe. (Standardising the procedure sounds like a positive sign that they have targets to meet)

I think the general market is missing the bigger picture.