Sorry Gral I don't agree. I don't see finance coming anywhere...

Sorry Gral I don't agree. I don't see finance coming anywhere else but China, and most specially the CDB. Viable or not, most banks, especially Australian don't invest in mining projects due to risk.

If Ansteel don't fund the KML debt finance then the JV agreement is off and we are in a whole lot of trouble. Part of the agreement for 50% ownership of KML was to provide both debt/equity financing for GBG and ALL offtake agreements of GBG's initial 8mtpa concentrate/pellets. This must happen!!!

Also I doubt we would find another JV partner, especially for magnetite in the current climate. Not to mention no other company would be interested in GBG/KML while Ansteel holds 36% in the parent entity - GBG. However given the significant expenditure to date, commencement of construction, and the significant placement @ 85 cents during the GFC, all of the above doomsday scenarios look extremely doubtful.

GBG's main risk is IO prices in my opinion. I doubt Ansteel would have put around $574 million in cash into GBG/KML for a project that it isn't confident of being financed/viable. I am hoping like others here, that Ansteel uses GBG as its future investment vehicle into all aspects of Steel making. GBG will be generating a significant profit in the future, with it's market cap at many multiples of today (assuming Karara runs smoothly). Consequently Ansteel's 36% ownership gives its a great back door entry into other Australian assets whilst avoiding uncertain/selective FIRB policies.

Still a long way yet, but the GBG story remains positive and a large amount of potential here.