Shadowboxer,For Xstrata the EG Chrome is the interesting part....

Shadowboxer,

For Xstrata the EG Chrome is the interesting part. Yes they would like to increase their footprint in PGM but Ferrochrome is a key part of their business.

Xstrata have access to a big slice of Chrome but a high Chrome PGM deposit in the Lion smelters back yard is really the icing on the cake.

How I see the majors interest here is;

1. Anglo goes for Garatau where there are synergies with their own PGM operations in the area.

2. Xstrata steps back from Garatau but does a JV with Tubatse on a project that starts with surface mining of PGM and exploitation of PGM / Chrome synergies. There are now finally new technologies in place that allow successful PGM extraction from high Chrome content ore. I am almost certain that Xstrata delay in taking a decision has been all about waiting to see if NKP can secure rights over EG farm.

BR
Max