jv arrangement for yalgoo

Any thoughts on JV arrangements for Yalgoo? I get the impression FWL are looking for a 50:50 split of construction costs/offtake.

Personally, I'd like to see some flexibility here. I don't like the idea of FWL going out looking for finance for up to $500m. I like the look of the JV closed by Bauxite Resources Ltd last week, under which their Chinese partners pay 91% of the alumina refinery construction cost (about $1.5 billion) and receive 70% of the alumina product. Bauxite Resources will fund 9% of the refinery construction cost and receive 30% of the alumina product.

For FWL, this would equate to a conservative $120 m gross revenue per year on about $90 m in debt. I could live with that!