Managements Awkward Silence, page-99

I was going to include a comment about the acid plant in my last post as an example of how LPD overlook simple really important circumstances like not highlighting the quandary that the DFC wont lend to us if we deal with foreign entities of Concern for P1 but LPD expect The DFC to lend to us directly for mine development so we can sell ore to foreign entities of concern.

The original reference by Logzy to the situation where we were all set to move into a certain industrial estate in Abu Dhabi but had to change to Kazid because we eventually procured the knowledge the acid manufacturer next door was not going to be able to supply us with sulphuric acid. I mean it is a bit of a no brainer that you might slip next door with a packet of Anzac biscuits and a thermos of coffee to have smoko with the owner of the acid plant, to find out whether he able to meet your requirements before you put all other processes in train to move into the estate.

The amount of acid required for these commercial plants even at P1 stage is huge, let alone a P2 plant, also the lack of transparency regarding offtakes for Caesium and Rubidium, which are essential to provide viability to LPD chemical plant production. These two factors may be the flaw that potential lenders could not come to terms with to offer finance.