Ann: Resource Increased To 0.5 Billion Tonnes , page-36

You are right about the resource, there are an abundance of companies around with huge resources. Ferrowest have a medium sized, but low grade resource which means nothing without finance to get their project off the ground.

However, before the GFC, they were close to signing a JV with one or two overseas Steel makers to fund 50% of the project. This was put off due to the GFC so I think there is still a possibility to get this off the ground, depending on whether these discussions are back on the drawing board. Dongbu Steel was one of these companies.

The lack of MPI producers may be what makes FWL more attractive to Steel makers looking to secure a MPI supply. With such a huge amount of cash to raise and with such a low market cap and no cash in hand, it puts FWL in a tough position as they are totally reliant on outside funding to make any further advances.