GMC 0.00% 0.6¢ gulf manganese corporation limited

Ann: Capital Raising Update, page-54

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  1. 723 Posts.
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    I was asking about power because I suppose my involvement with KPR made me intimately aware of the issues in West Timor. At the time I knew that the power station was only 30Mw and that it did not provide enough power for West Timor - so there was no spare capacity for GMC.
    They have now increased the size of the power station - you can see the changes on Google Earth.
    I am unsure whether the 14MWw for the furnaces will be sufficient but I accept on face value the GMC announcement. What type of furnace - submerged arc furnace or blast furnace? On power usage it appears to be blast furnace, so will need coke, but I will leave that to the experts.
    Where is GMC getting coke if blast furnace and where and how will it be unloaded?
    I am unable to ascertain if the power plant has increased in capacity by 100% or 30Mw. The additions appear to be the same size as the existing power plant, but it is what's under hood which counts.
    If it has only increased by 30Mw then not much spare capacity for the locals.
    As noted in my previous post, there is no new construction site in the Bolok area unless GMC is looking to purchase the KPR site but that is subject to court action at the moment.
    One thing I have learnt out of the KPR issue with respect to West Timor is that you have to be wary of the information provided from the authorities (whether that is an interpretation issue or not revealing all the facts and requirements).
    Decision making is very, very slow.
    Also look at the fate of Intrepid (ex ASX IAU) who lost their $95m investment in a mine they developed in Indonesia.
    With KPR's joint venture a very large amount of money ($m's) was not accounted for and was written off by KPR which was probably part of the reason it went broke.
 
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