is it worth hanging on, page-40

MAJOR

yep, all your cautious outlooks are relevant in light of recent economic turmiol.

but most analysts predict that china will be able to carry forth on its path of modernization with its massive cash reserves and it sensible economic planning and so will all the other brics after they get over the bump in the road.

especially now that oil prices has plunged to more suustainable levels which means much more oil is avialable for china which is also building a massive pipe line to russia.

also china will have much greater energy capacity from the 3 gorges dam in 2012 which will provide a massive boost to its industries.

they also have a plans of installing many nuclear power plants.

that being, so ANSTEEL obviously has been part of the giant leap forward and wants iron ore for its steel mills.

when it buys iron ore from VALE it is paying full "retail" price plus a freight premium.

when it buys iron ore from KML it is getting iron ore at a 50% discount and is confident of a high quality long term supply.

the CAPEX for the KML project will be easily repaid over just a few years.

going forward ANSTEEL can confidently plan its operations and output for highest efficiency being confident that it has locked in a secure supply of iron ore.

ANSTEEL and CISA are closely related and GJ was in china last week with them obviously finalising the financials for the project.