Edgy,

Your post says: "What is most likely to happen in the future imho is cooperation between Noront and KWG."

This is true, a win-win situation. Why fight between themselves while the synergy can give them both the benefit of making (more) money together.

Need to keep in mind that it's not wise for NOT to go for CLF holdings by itself, since KWG

- still has control over the RR transportation corridor;

- it control 30% of BD (the 70% owner will need the cooperation of the 30% owner to get the mine development going)

- it has the gas furnace process that would save a bundle (compared to the electric arc furnace).

The option is there if Baosteel would hint to NOT that it would support a collaboration between the two, and will fund (partially or fully) the cost for acquisition of CLF holdings.

Alternatively, KWG can line up a deep pocket to buy CLF holdings and form a JV with this entity to mine BD first. In this case, NOT would be left out of the deal (but Baosteel can always have a friendly chat with KWG's deep pocket to form a super JV to spread out the risk).

As a smaller deal, KWG could convince CLF to sell its 14% control plus 70% of BD, for some attractive NSR...with a deep pocket that to fund the development of the BD mine for a percentage of BD mine (not the entire KWG).

Also, I believe that the governments would want to see some kind of commitment from a deep pocket some entity bigger than CLF and with billions to spend would be fine...Glencore is one, the German company is another, etc...)

Options are endless. Feel free to speculate.

goldhunter