govts to save stanwell - 12:30 pm , page-3

There has also been other media reports today regarding AMC. You may find these interesting to read.


$1.5bn AMC project iced
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Date: 11/6/2003
Author: Ian Howarth, Stephen Wisenthal, Laura Tingle, Sam Strutt
Source: The Australian Financial Review --- Page: 1/19

Queensland Premier Peter Beattie has confirmed that no further taxpayer funds will be granted to the Australian Magnesium Corporation's (AMC) Stanwell project. The AMC is desperately seeking an investor to inject $A200m into the smelter, which will be temporarily suspended until a creditor is found. The Australian and Queensland Governments have both contributed significant funding to the AMC's $A1.7bn project. Trading in its shares has been suspended until the future of the Australian magnesium company is known.


Frantic bid to rescue AMC plant
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Date: 11/6/2003
Author: Richard Owen, Steven Wardill
Source: The Courier-Mail --- Page: 25

The Australian and Queensland governments look likely to sign off on an agreement to buy Australian Magnesium Corporation (AMC) more time. The two governments have each put $A150m into the project, and as its two largest creditors, have little interest in seeing it liquidated. AMC's problems in securing $A200m in equity and support mean the project in its current form will be unable to go ahead. This outcome will seriously affect a 10-year supply arrangement with Ford, worth $A2bn, on which the company's debt package relies.


Cabinet lifeline for ailing smelter
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Date: 11/6/2003
Author: Steve Lewis
Source: The Australian --- Page: 2

The Australian and Queensland Governments are to assist the Australian Magnesium Corporation (AMC). AMC's Queensland smelter project needs a further $A200 million to continue. The main stakeholders, Newmont Mining and Leighton Holdings, have not yet been able to find a new investor. Australia's Federal Cabinet has now announced it will support a restructuring of the project. A loan of $A50 million will be available through the CSIRO. The government will provide a $A100 million guarantee facility to help with the raising of capital. The project will continue on a smaller scale.


Big projects torpedoed by lack of expertise
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Date: 11/6/2003
Author: Duncan Seddon
Source: The Australian Financial Review --- Page: 71

The questionable future of Australian Magnesium Corporation's Stanwell project follows a pattern established by two other mineral ventures. BHP's Hot Briquetted Iron plant incurred $A2bn in write-offs, while the Anaconda nickel project nearly culminated in the collapse of the company. Australian mineral companies seem to fail when they attempt to develop ideas and innovations into practical operations. Unless the development skills of mining companies are sharpened, Australia's mineral industry is unlikely to prosper.



The Media are having a field day with AMC, it makes me think they want it fail. I would have thought some investor would have joined in by now, but with end of FY03 many want the balance sheet looking good for current investors and attracting new share holders.

If they could hold off for several more weeks there may be a good chance for new investor coming on board.

Happy Trading all

The Truth is Out There..