Tantalum - "Given the more favourable current environment,...

Tantalum - "Given the more favourable current environment, longer-term contracts are now being reported in the $95-$140/lb range."

"Conflict Mining Bill: In addition there has been a significant shift in the supply chain in the tantalum market with the passing of the Conflict Mining Bill in mid-2010. This relates to materials sourced from the DRC and adjoining countries, with an aim to limit the use of conflict material.'

600,000 lbs pa (65% output) into 10 year contracts - "GIP has sealed a 10-year off take agreement with German tantalum refiner HC Starck GmbH (Starck), covering ~80% of the total cash operating costs for Phase 1 (~50% for Phase 2).'

What has changed?

I don't know what the offtake price is. However, HC Starck has a big fininal incentive to enable GIP to get this project, one way or another, up and running. Consequently, the opportunity cost of this project not get up and running has significantly changed.

Regards

SP