What happens next?, page-53

I think it is more of a strategic long term plan of the Chinese interests to lock down this whole IO region (Iron ore Triangle- Iron Ore Dragon) until they were ready to develop it. This has really meant that Giulio's options were limited without the support of the Chinese funders. Then there was the GFC and the backside dropped out of the IO price.

Chinese Government have been telling SDL that they want this project to progress and are fully supportive in seeing it progress but have not put their hand in their pocket to fund the deal over this period(besides taking an indirect position in the company through Hanlong). They could have easily funded this project a decade ago but instead have been buying their time up until now.

This is a very strategic project and will employ many people including the Chinese people in its development. It will contribute 10% of GDP.

There is no question that the project will be profitable at current IO prices and what ever loan the Cameroon Government and SDL take out will be paid off (reduced credit risk).

Yeah the new force in IO is well worn saying, there has been plenty of mileage out of this one. They will need to come up with a new slogan when the project gets up and running.lol