Back to the Basics, page-17

scottm,

I agree that the vml announcement should have a good knock-on affect for CNQ. JOGMEC are highly regarded in the Japanese industrial arena and they tend to look for synergy in terms of what they introduce to other players. The mitsubishi interest was a guaranteed aspect, since mits are already involved with us just down the road so to speak. However, there will be a lot more to the story then attributed by the press release. My guess is sumitomo will be the driver for the main partner and not mits as sumitomo will be in the box seat to provide infrastructure. Something they are very very good at.

JOGMEC integrates the functions of the former Japan National Oil Corporation, which was in charge of securing a stable supply of oil and natural gas, and the former Metal Mining Agency of Japan, which was in charge of ensuring a stable supply of nonferrous metal and mineral resources and implementing mine pollution control measures. As a business with national interest, they have a remarkable exposure to the Japanese giants, and they tend to pair projects which prioritise Japanese interest.

So why I am adding this here? I feel that if sumitomo get involved with VML, we will see the development of a centralised tungsten hub. JOGMEC excel in creating synergies and a centralised hub would make perfect sense.

My preference in CNQ...at this stage however.