No, the $1.6 bn (probably now $2 bn, as you say) was for 400,000...

No, the $1.6 bn (probably now $2 bn, as you say) was for 400,000 tonnes per annum from what I remember. A 200,000 figure was a more recent thing put about by IMIDRO, I assume, for some kind of staged development. Yes, I did follow that Perkoa saga ages ago and the sacking of that hand-in-till director on Aim Resources, but I lost interest after it was mothballed and Aim Resources almost went bust. I don't know what metal prices IMIDRO were using but in a recent article in Iran-Daily, they said Mehdiabad had $19bn of metal in it. I assume all of that is recoverable as the Feasibilty study was only talking about recoverable metal. If we can get away with a smaller capex, say, $800m, then the economic rent on the mine (surplus over that strictly required for rational investors to bring an asset into production) will be enormous (and of course thanks to Mr Jordinson's incompetence, none will come to us, as evidenced by the lack of share price movement on Mr Jordinson's renewed agreement announcement: he is either too embarrassed to publish the details of the agreement or maybe he is still haggling? Remember we've been haggling for 6 years or so).

I think you underestimate just how ruthless Iranians can be in business. The grotesque inefficiencies in their economy (e.g. scarce resources used up chasing transfer payments from one sector of the economy to another are just one example) means such costs have to be paid for (at the macro level) so rather than print money they would prefer to scalp mining businesses of their share of the economic rent if they can, and redirect it to organisations that are loyal to the regime. Iran is the stingiest country in the world for rewarding investors (other than when you are a favoured organisation prolonging the regime's grip on power). All lucrative contracts get awarded to organisations affiliated with the IRGC? The Iranian cabinet is filled almost exclusively with ex IRGC people.

On Seal's point about Jordinson having a supportive team of Iranian people to help him, I can only say that as long as they are resident in Iran, despite how friendly they will be, the regime will have a complete grip on them, and there is no excuse for Jordinson not being Iran street-wise and for not having a mastery of the politics of the region (none of his reports or presentations have EVER demonstrated that he has anything like a good enough mastery, and he certainly doesn't help himself by not bothering to master Persian). Anaesthetists can't blame their calculators for overdosing a patient: they are supposed to be numerate enough to know when the calculator is malfunctioning, and Mr Jordinson is supposed to understand just how much the Iranians want to get out of our former valuable agreements and is supposed to understand how strategically weak the regime is (but tactically temporarily strong). Out of the choices of b) and c), b) was a glaringly obvious choice (do nothing) if he could not obtain a substantial share price rise by reaching a new agreement with them. The main reason (according to Ehud Barak) the Israelis have not bombed Iran is because 37% of the 20% enriched uranium stock pile has been converted in the last month or so to medical use, but the problem of excessive 20% enriched stock piles will probably recur in March 2013.

Article from Iran Daily on Mehdiabad here: (22/5/1391 is 12th Aug 2012)
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http://www.iran-daily.com/1391/5/22/MainPaper/4304/Page/4/?NewsID=72237


Mehdi Abad Zinc Mine To Be Reactivated
Domestic Economy Desk

Given the importance of Mehdi Abad Mine in Yazd province, a team has assumed the responsibility for launching the mine.
Saeed Samadi, administrator of equipping Mehdi Abad Lead and Zinc Mine, told ISNA that the mine has the second intact reserves of zinc worldwide valued at $19 billion.
He explained that some 65,000 meters of excavations have been conducted in Mehdi Abad Mine, putting the proven reserves at 165 million tons and geological reserves at 400 million tons.

Mehdi Abad Mine belongs to Iranian Mines and Mining Industries Development and Renovation (MIDRO).
Iran is among the 15 major mineral-rich countries and exports its industrial and mineral products to 159 countries, including Iraq, China, the United Arab Emirates, India and Afghanistan.