rj and flyby

There are a few point to add to your discussions:

- Agreed that CLF would not allow anybody to do anything that is not be for its own benefit. If it were a road, then it would be a private road for CLF to ship chromite out from BT even though BD is a better ore body. Well, this is the way to let the little company to twist in the wind. It does not mind to spend $800M for the concentrator in the BT plan. When KWG becomes motionless, then the plan can be modified in a heartbeat to start with BD first (they will need a concentrator for the low grade stuff in the future). This is big fish eating small fish strategy. CLF does not want any competitor in the RoF for chromite. It would even buy a small company just to bury it, just like the practice often done in the software business. Big comapnies would buy an small upstart companies with an innovation that may hurt their main stream strategy for millions of dollars, just to bury them.

- KWG has quite a few options: The first one is the plan to develop BH and the RR to carry out its chromite. They may even want to carry the ore out by ice roads, if the RR is not ready in time. But the RR can be a stand alone cash cow (CLF can certainly use it subject to negotiation of users fees).

Another obvious option (and better one) would be to kiss an make up. The 2 waring companies can join force to develop BD and the RR together. Money for everyone and we will be happy.

A third one would be to start a JV with PRB to develop BC which can be developed faster (they have the Tech report that says they have about 10M tonnes @ high grades). This deposit looks small compared to BD and BT, but if they can have a head start they can generate quite a bit of money. Say, 1M tonne/yr. This will last for 10 years. In fact it can be scaled up to 2M tonnes/yr (to last 5 years , assuming that 10M tonnes are all they have). 5 years with loads of cash flow would be an excellent interim solution while waiting for BH to get on-line (Perhaps, the RR would be ready by then?).

The 1st and 3rd "in-your-face" options may force CLF to be more flexible to come to the negotiation table to develop BD (and BC) first along with the contribution for building the RR. The government can squeeze in a narrow service roads for passenger cars and service trucks. They government can even charge fees for companies to bring supplies (not heavy loads though) during the first few years to get back its investment (some $0.5B would do?)

There is money to make here at the RoF and CLF knows it. Why waste time going through posturing, threats, appeal, etc...

Just scrap the appeal option and give KWG about $1M to top up its cash box. After all, CLF is a majority shareholder (17%?) of KWG. So really, it's only $830,000, chump change. Now I am splitting hair.

goldhunter