ok so ostensibly we have nothing with BBIG that is concrete. supposedly, BBIG have bought themselves another 18 months but in the interim the FMS Board attempts to do deals elsewhere with both our PIOP and Canegrass or do they sit and twiddle their thumbs for 18 months?

I am sure this announcement is a response to the pressure applied by s/h at the AGM.

The FMS board has acknowledged that they have obligations under the Continuous Disclosure rules of ASX, and are trying to tick the boxes.

 

The extension of BBIG fulfillment of conditions under the State Rail Agreement from March 2019 to Sept 2020 seems a long time? I wonder if it is a typo, and should be Sept 2019, or do they really need another 18 mths? I suspect they do need another 18mths.

 

It seems clear to me from that announcement, that the issue here is the changed nature of the Chinese steel mkt, and that the grades of ore from PIOP are not sufficient to supply the mkt at level to ensure PIOP (and BBIB project) is viable.

 

So as they have stated, it is all about extending the JORC resource at PIOP, and developing a benefication process to upgrade the PIOP ore over that 60% Fe level.

So probably a lot of research, time and money. And FMS said that in last Qtrly.

 

That statement from FMS said a fair bit, but failed on other levels. They keep saying no "existing commercial arrangements in place with BBIB" - but we know that because FMS if they had a formal Agreement, they would have to announce it!

But the issue for us is, that there most assuredly question is if there is an "implied" agreement.

And we know there must be, because we (and the world) have been told by BBIG that BBIG will source their ore from PIOP!

 

Yep, that statement re Hay Stack Flats was intriguing, because they have historically provided s/h with no news or comments on the activities and progress of BBIG, yet they make that comment. 

Clearly it must have arisen during FMS' "discussions in the past".

 

From the tenor of that announcement, stating that the Company "is not proposing to engage in further discussions until other aspects of the PIOP are better understood (as described in the Company’s last quarterly report released on 26 October 2018)" imho, is implying that BBIG and FMS are to await the outcome of a JORC reserves upgrade, resource extension, and the development of the all-important benefication process. Almost certainly, that plan is a plan in full agreement with BBIG.

 

It seems clear that a CR will come in early 2019. I reckon at least $10m. FMS alluded to that in Qtrly.

 

What is a definite, is that both BBIG and the Chinese have invested significant money into BBIG project. That project goes no where without PIOP and by default, without FMS. They have got pretty much all of the strands in place (all of those agreements with Chinese for Construction of rail and port, funding, equity, I think funding and development of PIOP by the sounds of it, all the Govt approvals, environmental approvals, Land Title approvals, and recently the Offtake MOU's. And there would be Chinese Govt approvals as well).

 

So imho, whilst FMS is telling us no agreement, and State Rail Agreement extension out by 18 mths, there is no way BBIG ( or Chinese) will walk away.

It seems that because mkt has changed (ie need 60% - 62% Fe), and project FID delayed, but the Chinese and BBIG will not walk away.

This project will essentially be a Chinese project.

They are involved in all facets of this project, and it is reliant upon the funding and expertise of the Chinese.

They are long term planners.

If we think about the history of Palmer and CITIC and Sino Iron project, the Chinese will be very keen to ensure that history does not repeat itself, so they will be keen to be involved in all aspects of the development. BBIG's part will be to get all the approvals in place.

 

So we just need to put shares in bottom drawer, and wait out the BBIG partners.

 

All just IMHO.

cheers

 

 

**********************************************

BBI finds foundation project for Balla Balla

 

19TH MAY 2017 

 

PERTH (miningweekly.com) – Infrastructure developer BBI Group has struck a deal with the subsidiary of Mineral Resources, for an option to acquire the Weelumurra iron-ore project, in Western Australia.

The project is some 15 km from BBI’s proposed Central Pilbara rail head and stock yard, and had the potential to be the foundation iron-ore asset for the planned Balla Balla infrastructure project.

 

The Balla Balla project is a multibillion-dollar development that will link iron-ore deposits with a new iron-ore exportfacility at the Balla Balla port, through a 162-km purpose built railway.

BBI CEO Nicholas Curtis said this week that the company was continuing to develop the Balla Balla infrastructureproject as the next tier-one, low cost, large scale iron-oreexport infrastructure facility in the Pilbara.

 

“Securing the Weelamurra iron-ore asset is an important step in BBI’s efforts to progress the project to a final investment decision. We look forward to working with Mineral Resourcesand other Weelumurra stakeholders to continue its development so that we are in a position to bring it into production via the Balla Balla infrastructure project.”

 

Curtis said that in parallel with securing the Weelamurra iron-ore asset, BBI also completed an exploration review of the iron-ore potential of the ground covered by its Central Pilbara Hay Stack Flat tenement applications, which are located adjacent to the proposed railway line.

 

The review determined its geological characteristics have the potential for iron mineralisation of up to 400-million tonnes, and BBI is now progressing the application and planning of an exploration campaign.

Furthermore, the company has also progressed confidential discussions with the owners of other potential customer miners seeking export capacity through the infrastructure project.