I agree that GBG is still high risk, as with any upstart miner....

I agree that GBG is still high risk, as with any upstart miner. But its a very viable project.

Yes it would be bad for GBG if they can't work out the financing with Ansteel. But if Ansteel puts a gun to GBG's head over the financing, they will be shooting themselves as well.

Ansteel owns part of GBG and part of the project directly, and if the financing terms are too onerous, GBG has the option of getting finance elsewhere....and they would get it because any bank can see that this is a viable project. Or they could go to Japan or Korea. If Ansteel doesn't fund the project, presumably GBG can sell their ore to any other customer, in an increasingly broad and deep spot market (contract deals are declining in importance in the iron ore market).

I am not saying that any of this will happen - in fact I'm confident that it won't. I'm just saying that the mere possibility of this outcome will force both GBG and Ansteel to come to reasonable terms. I agree that there will be some argy-bargy over the terms but this will be an impact at the margin.

In fact I wouldn't be surprised if the time lag on the financing has been contributed to by GBG insisting on better terms - and it looks like the iron ore spot price and the S&P500 are making GBG's negotiating position better as time goes on.