PERMITS, page-21

I do believe LKAB will do the mining for us. In the DFS I believe I remember a line mentioning that the mining would be contracted. I'm assuming it means to LKAB. Would make sense, LKAB could drive their electric trucks and staff over to TLG to do some mining, then return them to their mines to mine additional Iron Ore whilst the reindeer are down from the mountains and we aren't mining. Saves having all that expensive mining equipment sitting there for half a year doing nothing, and only employing mining contractors for half a year and trying to rehire them all again next year.

I'm not so sure on the part about handing over responsibility such as permits and restoration to LKAB. I mean they can probably do it, but it seems like so far we've don't all the work ourselves, including getting the permits. I don't think we'd hand that over at this late stage and then pay LKAB as if they'd done the work.

I guess we'd just pay LKAB per tonne mined. Would be more than it costs them to mine obviously, but I would imagine less than it costs for a tonne of iron ore, which is about $140 a tonne at the moment? They're costs would have to be well below that to make a profit mining iron ore. And I'm not sure we'd pay more than that as LKAB aren't actually depleting a resource to make money. Or maybe we pay them at the same rate as iron ore, to make it worthwhile having their equipment and staff mine our mines instead of theirs?

Either way, it's a win win for both parties. LKAB make nice mining profits that don't deplete their resources, we get graphite out of the ground without having expensive equipment costs or underutilising staff and equipment when we aren't mining. Not sure LKAB even need equity in our project to be honest, we should be giving them enough profits