kzl vs hgo, kzl should be alive and go ahead, page-7

Hi gself,

"deals together with Iron Ore companies and buyers ??"

Donot exactly know what you mean, but we are supplying iron ore/coal for several large Chinese steel companies(2 of them are in Top 5).

Once these companies cannot negotiate reasonable price with Aus large iron ore producer, (Atlas is always the case, treat different companies at different price),then we are needed, and we aslo help these companies seek iron ore supply from USA/brail/Chile/Mexico. However current demand from China is very weak. Just becasue the steel suddenly becomes very hard to sell in China.

Coal will become next problem, as at today, there are 88mt coal on chinese ports ready to be sold, and the CFR price for 5500Kcal thermal coal already droped to less than USD$95/t. You know this is CFR price, FOB could be less than $70/t!

Perhaps you donot like this outlook, but it's real, you can contact your friend in china who knows the steel industry to confirm.

Mining rights is also one of our business scopes, we always introduce some Aus mining projects for large Chinese mining companies/agency/funds, however as you know, the investment from China to Aus is weaker and weaker in last 2 years, mainly due to significant lose these chinese companies made several years ago. Like Minmetal lost USD$15 billion on its investment on Rio-tinto.

We are still confident for KZL's asset portfolio, but GFTG bring hurdle for other potential buyers in China, I have contacted serveral Mining companies in China who are keen on Aus copper/gold assets, they all reply me they will talk to GFTG first. As in my earlier posts, GFTG is clearly playing tricks on KZL. I can tell you one reason/benefit to register BVI company is: these companies will not need the approval from China Securities Regulatory Commission when they preparing to list on foreign stock market. and the extra tax benefits of course.

If so, this is not realy good for KZL SHs, as tricks always mean "low price" that's why I alway hope OZL can takeover KZL.

Anyway, the global beraish outlook can make anything happen or not happen, if Metal price keep falling, you can image there could be no deal for KZL at all.

People always worry about Europe, but actually for Aus, China should be its first concern. As far as I know, there is no any reason that the Mineral demands from Aus will be stronger in next 5 years, partly because mineral supply from Africa will boom and replace Aus.

You could not believe that China has lost more than $30 billion on its investment on Aus mining companies/projects in last 5 years. in next 5 or 10 years, these chinese investment cannot even make the interests back, no need to mention the profits.

What the Aus gov did? Once the mining booming, they are greedy on the tax income, IMO smart gov should develop policy to attract foreign mining investment first then think about the tax later in order to make mutual benefits for both side.

This gov together with the high AUD already damaged the Aus mining industry, unfortunately, KZL becomes the first one.