apg to pay dividend, page-12

Hi Trainer,

you asked " why would they go to that much trouble and then can it"

well, just using my thoughts APG have a MOU with Iluka that specifies a feasibility and when complete then a plant will be built. It is a deal and the best one APG have NOW!

Any project/plant will require a feasability therefore the results of this one can be used on ANY project or not used on a particular project if so desired,

So, in line with the MOU APG undertake a feasability which entails upgrading the plant at Newcastle into a larger one. This will firstly complete the feasability study for the MOU, secondly serve as a marketing and test tool for other companies and thirdly demonstrating that the technology at that size plant will work and accordingly the scale up to a 30ktpa plant is nominal by normal engineering standards and very reasonable if they were to go directly to a 100ktpa.

So once built they can move forward with Iluka, move forward with Cristal or whoever or do both.

My guess is IF it is Cristal they want want all funding going to their project and not the CRL.

It really depends what Cristal want to do. The existing CRL deal would not preclude cristal from using the technology therefore they may assist with funding for the feasability and sit back and let the 30ktpa plant be built then move with APG.

My guess is that will not happen because APG also have to fund the plant and Iluka certainly are trying to screw APG to the wall.

The CRL deal is CRL own the deposit, APG pay for and own the plant and Iluka purchase the end product.

Well done Iluka...no risk, gets everyone to pay to prove the technology at commercial level and then has the right to use it on other deposits (of course APG gets a slice)

It could be very very interesting.

Cheers and beers at the AGM