re:public consultation invitation in july, page-8

Just come back from Public Consultation held in Gladstone today, Carl Moser , Ross Johnson & EIS consulting Co present.

Major points; Carbon tax to add $7/t or 2% to production costs, still in the very bottom of the cost curve for world steel producers & profitable.

To produce high quality steel for markets in Asia, ABS out of the picture & not mentioned at all bar, Middle East use 20mt, China 75mt & Asia 55mt/year of steel. Most production will be exported to Asia as they will be closest customers. Demand still exceeds supply.

MMCI have Aust. interests with FMG, Aurox (now Atlas?, Ross also mentioned SA no Co name mentioned) & Gladstone Pacific Nickel, ore to come from WA. Boulder to have interest in limestone deposit near Gladstone.

Bund wall of extension to Fishermans landing to be completed by end of this month. Three co. contracted by Gladstone Port Authority to dredge harbor, part of $750 plus expence for LNG projects underway. Dredging will fill area for Boulders proposed #5,6 & 7 wharf's, ore stockpiles & load/unload area, 50 ha?.


EIS submitted by mid Sept. & did state on slide that Formalised Relationship (JV)with MMCI Q3.2011 as with BFS & EIS.

Boulder still looking for 30% interest with MMCI to arrange finance. Aim for Financial go ahead by Q1 2012 & site works to start May-June.

masteroods $4B does not include iron ore mine, breakdown is something like $1.8B stage 1, $2.5 stage 2 with $1.5B in stand alone owner built & operated plants to service plant eg Co Gen, lime kilns, ox. plant etc (still to find a Co gen operator).

As a Gladstonite I have seen projects like this have site works completed & not go ahaed (Aldoga Aluminium Smelter) so as a share holder I have fingers crossed & will waite to see large volumes of BGDF going through later in the year to give any confirmation that this project may proceed.

DYOR & feel free to ask Q's, but may not get to them untill tomorrow.

newo