Obviously ARH is currently in negotiations with MCC re...

Obviously ARH is currently in negotiations with MCC re financing, offtake and construction. MCC i believe is wholly owned by the Chinese Govt and as we have been advised has been responsible for 90% of the construction of additional steel making capacity in China in the past decade.

CITIC are just next door and their majority shareholder is the Chinese Govt. CITIC have stated that it is there intention to sell 50% of their venture to a prominent Chinese company in the steelmaking industry.

CITIC and ARH will share essential infrastructure, including the port, desalination plant etc.

1. Given that they are so close together why would each party set up a number of separate ore processing facilities when you would think it would be much cheaper to set up joint facilities, operating costs would be lower and hence profits higher?

2. Is PP taking advantage of the current window of opportunity ( until recently the deposit was uneconomic) to accelerate the development of the southern block with the ultimate aim of having ARH taken over by the Chinese, who would pay him CITIC type money for each further tranche of 1 billion tonnes plus attractive royalties.
I just cant fathom why the ore from each deposit would be separately processed given the capital cost of constructing a number of facilities, particularly given the closeness of the deposits and different types of final product to be produced.

Just my 11 cents per share worth.