rumbai:With respect, your comments are not properly sourced and...

rumbai:

With respect, your comments are not properly sourced and context and meaning is unclear.

As I understand it, there is a difference between the seeking of a proponent to:

i) facilitate the actual building of the Esperance port development (the procurement process), and
ii) identify and confirm potential users of the new port infrastructure (presumably with user agreements).

There will be one proponent to build and manage the port, and multiple users.

Even if FAS is excluded as not being a confirmed user of the new port infrastructure at this stage (there is no clear evidence this is the case), there is still no reason it cannot reach agreement with confirmed port users.

The ESPL "will not broker any deals between miners and the private sector" presumably that's the role of the proponent.

(I think what they intended to say is "between miners and third parties in the private sector", as miners are private sector but this doesn't affect that it seems to contemplate agreements between confirmed participant miners and other miners. This can include access to the port facility, not just sales of a mined resource.)

Usage payments must go to the facility whether the participating miner is using it or not.

Therefore even if FAS is not a confirmed user at this stage there is IMO scope for it to reach an access agreement with another miner who is a confirmed participant. You can't tell me things will all go to plan with all confirmed users and port capacity will be constantly full. There has to be excess capacity and there will be a shortlist to manage this. This is what a later version of the data room is surely for.

"In regards to the Procurement Process, EPSL will:

- Conduct a tender process to select a preferred proponent that has the ability to confirm the bankable demand from the mining companies seeking export infrastructure at the Esperance Port, and then design, finance, construct, and operate the facility, and otherwise meet the Project Objectives;

- Facilitate the flow of information from all miners to proponent tenderers through a project data room to maximise the ‘multi-user’ opportunity presented by the Project;

- Ensure clear communication with the market to manage expectations about the process, risks and constraints;

- Give miners the opportunity to remedy their financial position to enable them to participate; and

- Monitor the procurement phase until financial close.

EPSL will not:

- fund or be the principal of the infrastructure development, or
- broker any deals between miners and the private sector."
from http://www.esperanceport.com.au/muiof.asp

There is provision for miners to remedy their financial position to enable them to participate.

This is an important provision for all explorers transitioning to miners such as FAS. We know that FAS has an MOU on foot.

Where FAS is on the record as saying they don't need to use the MUIOF? I'd assume that FAS is not the proponent, but will not use the MUIOF seems a stretch.

I agree that an update is needed from the ESPL.

comments or corrections to this interpretation welcome.