Riddick,That's the pot calling the kettle black, eh?90% of the...

Riddick,

That's the pot calling the kettle black, eh?

90% of the stuff you've written in the past has turned out to be ramped up garbge, $5.00 share prices and the Japanese/MMX proposal will get smashed by the Chinese in the Oakajee tender and umpteen other incorrect statements. So don't call what I write garbage unless you attach a disclaimer that your own ridiculously inaccurate statements may be subject to ridicule too.

Re. running into the ground, I'll explain.
Ansteel has built a new mill tailored to suit Karara ore- so that will always be the prefered ore for that mill.
Ansteel cannot buy or produce cheaper ore than what will come from Karara. Because of that they will preferentially use that ore at almost any cost. Three simple facts.

So, should the IO prices drop again over the coming years or even in later years, or costs blow out even, ANSTEEL WILL NOT STOP USING ORE FROM KARARA EVEN IF GBG'S 50% IS BEING SOLD AT MINIMAL PROFIT OR LOSS TO GBG. Get it?????

Ansteel's cost for ore may still be competitive against Vale's etc. because there is no markup in Ansteels share but GBG's share may not be profitable enough for GBG???
Awww shucks, did you think Ansteel will just shut down the mill and pay more to someone elses for ore until their partner GBG is making a nice fat profit from the ore they sell to them???

Why will Ansteel be driving itself into the ground like you say if it is still the cheapest or equivalent source for them?????? That's a thoughtless statement on your part.

Re negotiations, if you think the Chinese Gov't will let the steel mills negotiate individually next year, you are talking sheer nonsense without real knowledge of what is currently being set up as we speak. Stop believing what you read in the papers. There will be a single desk in operation and the bargaining power gained through that will be immense for the Chinese people and no other country will negotiate first because they know that China will deliver by far the best price outcome for all the buyers!

This year is already seeing huge IO sales as other countries and China stockpile in order to draw out negotiations next year and reduce the need to buy on spot while China puts the screws on.

As far as your "commercial priciples", the truth is you have no idea what terms constitute the offtake policy except for what GBG have told you which will be very far from the whole deal. You'll find out about the parts that benefit Ansteel only if the poop hits the fan.

And I agree, a lot of that does apply to other IO ventures with OS JV's. I am not claiming that any possibility is a certainty but if you ignore the possibilities then good luck to you.

A good example for you- MGX was rated a buy by 8 of the biggest brokers in Aust. and look what nearly happened to MGX. The brokers all thought nothing like that could ever happen to them because they ignored the possibilities so they could "step outside".