Kelbys, it's the same article that originally came from...

Kelbys, it's the same article that originally came from Bloomberg. You can view it there.

I don't think we will get a resolution very soon unless the Govt changes it's mind and says the law will not be retrospective.

The mines minister is asking existing mines to come up with proposals about how to implement the new law in their case. But the legal advice Base has had is that this is illegal if applied to them. So the answer should be to leave us (Base) the hell alone because what you are doing is illegal and we will fight you in the courts.

Base is in a difficult position because if it comes up with a way to comply with the new 35% local equity participation law then it will be weakening it's own legal position by being seen to endorsing the Govt's illegal act. But if it does nothing then it may have some worse alternative imposed on it unilaterally.

It will be most interesting to see how this plays out. The market has most likely over-reacted IMO.