Haitech. I reckon RIO see what, to me, is fairly clear. That is...

Haitech. I reckon RIO see what, to me, is fairly clear. That is the agenda has changed and BCL will inevitably not end up with the tenements it has now. I personally think there is a fair chance that BCL will end up with nothing (in terms of tenement) and getting the tax assets back off the PNG gov will be a huge stretch.

Saw this in the HY Finanacials which backs up my thoughts. –

“Negotiations are continuing aimed at resolving the Taxation Dispute between BCL and the Internal Revenue Commission of PNG.”- My view is BCL will lose this.

And

“As reported to ASX on June 25th, 2014, a Draft Bougainville Mining (Transitional Arrangements) Bill circulated which, in its current form and if passed into law by the Bougainville Parliament, may adversely impact on the mining rights held by the Company, which include a Special Mining Lease, various other leases for mining purposes, and several Exploration Licences. The Company has not made any adjustments to its financial statements for any impacts that might arise should this Bill be enacted in its current or similar form.” No adjustments to financial statements – hmm. Well, I can see this eventually having a fairly big impact on the balance sheet. $548m of mining assets (I would put zero on this) with only $350m counted for in provisions means that future write-downs (in excess of provisions) of $198m may happen.