1) because bean-counters put assumptions into financial models,...

1) because bean-counters put assumptions into financial models, and adjust them to get a +NPV; banks like +NPV projects and give money to them, and when projects go bust the banks *sigh* say "oh well", and find another project to invest in. I don't know if you've noticed but banks don't seem to worry too much when money gets "lost", they still get a bonus;

2) xstrata got involved win windimurra due to excellent WA state investment and incentives to promote downstream processing (which in every instance has failed), and also to get away from black empowerment issues and energy constraints in south africa;

3) i coud list any number of potential reasons, but my mother always said a fool and his money are easily parted, and often she was right.

But yeah, what a terrible orebody they're trying to play with - a widowmaker that's probably lost $500 million with a further $400 million rated as junk bond by the credit agencies and requring debt servicing at a horrendous rate of return.

Time has told, and time will tell, the bell has tolled, and the bell will tell once again.