offtake agreement pardoo, page-14

Also people get scared of the China Growth story slowing down, but thats not all that bad as that sort of growth is not sustainable.

for example.

Lets say an economy is worth $100 per year.

in 2007/2008 it grows by 12%

It is now worth $112.

The following year, there is a credit crisis and the globe begins to be on the brink of recession.

This particular economy only grows by 7%

7% of $112 will bring the economy up to $119.74

Bottom line is, the economy is worth more even though the growth is less and all those people want to build houses, they want to drive cars, buy computers, catch the train to work etc etc.

Iron ore is the product that they need for all these items.