KP2 Discussion, page-243

So here is how i read into this latest EPC Update.

KP2 has repeatedly expressed their need for performance guarantees surrounding post construction mine performance, and has again done so during this announcement.


It appears to be a sticking point during negotiations.

This announcement also introduced a new concept/proposal which seemingly came out of the blue (i.e. "PowerChina has expressed interest in operating the mine after construction").




If we try to make sense of the problem (performance guarantees), within light of this new proposal from PowerChina for operating the mine after construction, then maybe the conversation between KP2 and PowerChina went something like this:

KP2: "we need performance guarantees post for post construction mine operation".

PowerChina: "how can we provide an operational performance guarantee.? what if your staff are not operating our perfectly constructed mine correctly and therefore the poor performance problem would be with you as an operator, rather than with us as the mine builder".

KP2: "well, how do we get around this stalemate".?

PowerChina: "how about we build the mine and operate the mine, then we can provide those performance guarantees you need, as we will be the builder and the operator".?

KP2: "ok, that could be a possible solution to our stalmete, lets see a proposal for PowerChina mine operation after PowerChina construction".

Just speculation, but possibly how this could have played out.

Proposal for mine operation due during July 2024.