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Re: Lexit post# 19157

Tuesday, 04/22/2008 11:57:05 AM

Tuesday, April 22, 2008 11:57:05 AM

Post# of 27515
You are referring to the maps which fail to answer how Rio Tinto will transport mined ore from Simandou to port cost effectively. BHP refers to Rio Tinto's Simandou as a "santa claus" project because no company can profitably afford to transport iron ore from simandou without a paralleling railroad.

Building the railway from Nzerekore to kankan, as a project by itself, isn't very expensive. Because Rio Tinto is not devising efforts to accomplish the task, it is obvious that they were not assigned Railway rights in their Simandou agreement. Again, let me restate, BHP calls Rio Tinto's Simandou a "Santa Claus" project.

On this basis, I am concluding that Balla Keita and his 25% partner (guinea government?) are controlling railway rights between Nzerekore and Kankan and are acting independently of BHP and Rio Tinto so as to ensure that the Guinea government will have a stake in the enterprise mechanisms that will allow it to account for its share (in $ value)of mined resources once the behemoths BHP, Rio Tinto, and Chinalco merge and begin mining.

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