Not sure if anyone here has seen the article in The Australian (20 Sept) which provides a very good summary of why Yilgarn lost Oakajee tender and why Beijing is so pissed off now with Barnett.....
Assuming PDY engages with a Chinese corporate on potential JV in Oakajee or whatever....the final nod comes from Beijing and this is totally out of the control of PDY or even its Chinese "partner". PDY i believe is doing all it can to move forward on this but its not as if Stokes can pick up the phone to Hu Jintao and tell him to pull his finger out.
Anyone reading this who has done business in China will know that the issue of "giving face" in China can not be underestimated. Highly intelligent and savvy Chinese business men and bureaucrats are prone to what would seem to us to be dummy spits and irrantional/immature behaviour. But its all part of the song and dance. The Chinese LOVE dragging things out and not committing until the very last minute. I know....I worked and lived there for 6 years. Nothing is ever done ahead of time. Always the last minute!
Its a waiting game on this OPR business and we need to be prepared to wait coz the Chinese wanna make Barnett and MMX sweat bullets before they make a move.
I believe that the Chinese will eventually come in (maybe with PDY) to make Oakajee a goer. Just as they lost so much face 3 years ago by being excluded from the initial Oakajee project, in the eyes of the Chinese nothing could be sweeter or more ironic, than ultimately coming back to claim the prize on their terms with the same idea (ie. Yilgarn IP) which was previously cast aside by WA govt.
Only the patient will be rewarded on this one.
PDY Price at posting:
1.6¢ Sentiment: LT Buy Disclosure: Held
