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Https://www.msn.com/en-us/money/technology/microsoft-s-15-billion-investment-in-ai-firm-g42-linked-to-uae-s-national-security-adviser
Note bulletpoint (5) :
.." G42’s commitment to sever ties with Chinese hardware suppliers underscores its dedication to addressing security concerns and fostering trust with international stakeholders. .."
GLA
In a sign of the times - and the Aussies' increasing concern at the ore quality issue - BHP is thinking outside the (lunch) box :
https://www.thecooldown.com/green-tech/bhp-group-iron-ore-microbes-steel/
.."BHP is partnering with Boston startup Allonnia to test whether specially crafted microorganisms can purify its iron ore, enabling greener steelmaking processes. This innovative approach could be a game-changer in the urgent quest to reduce the steel industry's massive carbon footprint, according to Bloomberg.
Traditional steel production, which relies on coal-fired blast furnaces, is responsible for a whopping 8% of carbon and methane pollution annually, according to the Office of Energy Efficiency and Renewable Energy.
However, a cleaner method called direct reduced iron (DRI) offers hope. DRI replaces dirty coal with cleaner-burning natural gas or emissions-free hydrogen.
The catch? DRI requires high-purity iron ore, but most of BHP's ore from Western Australia is loaded with impurities. That's where the tiny microbes come in.
Allonnia discovered phosphorus-eating microorganisms in BHP's ore that can also shake loose other unwanted gunk. The plan is to harness the microbes to purify giant mounds of raw ore, creating a high-enough grade for DRI..."
OK, fungi can be used to break up and convert oil spills into harmless waste (on a small scale), but even so...
.."As Simon Farry, Rio Tinto's head of steel decarbonization, told Bloomberg: "This is an absolute revolution for the industry, but it's not going to happen at the speed of a revolution. It's going to be an evolution over two to four decades."
Whatcha gonna do in the meantime, guys ?
GLA
Could it be? I see bearish momentum building up tho.
Not much trading here these day. silence before the storm?
Games
Well that suck any enthusiasm out of potential buyers!
Oh how the market enjoys playing its games.
News is close, real close…
Gla.
I expect a steady rise every day this week
Let the good times roll
A good start to the week!!
Hoping for much more this and next week.
Observation:
Looks like the market are trying to search out sellers, without attracting attention.
We’re creeping up nicely, once volume arrives we should move swiftly, especially as there is no new liquidity being added by shard.
“Gotta keep us off the risers list”!
Gla.
Glencore have totally messed up on their investment in HZM and their related nickel offtake agreement is not worth the paper is written on.
Perhaps this will incentivize them to realise their investment here sooner rather than later
I would love you to be right, Jiving!! Fingers crossed 😁
Exactly Shaun, so we must be in with a shout of strategic investor news this month as well as the FS.
ATG. Glencore are actually capital deprived vs their short term investment plans. They need to pay for the TEK coal interest by 3Q 2024 & they then need to expensively provide capital for the flotation of those coal interest into a separate entity & then recapitalise their remaining business. They need everything they can possibly get from asset sales, which btw I view as positive - ie they need to sell up minority stakes like ZIOX.
All good jiving 😊. Forget the past, we are not going to agree, it does not matter..
I believe (what do we know, lol?) that Glencore do not wish to sell this unless they received something so big they could not possibly refuse. Their strategy appears to be to milk this for many decades and maintain a healthy interest in the project. Glencore as multinational has oodles of cash (give more to shareholders? No), what they want is long term security and income streams, imo.
Peer review could mean the strategic entities
Board and peer review. Who are the peers?
ATG. Very happy to engage on important issues on our mutual investment, its what an investment forum is all about.
No its not clear to see where the obstacle was, regarding past failures. Glencore did not control the project, essentially due to their voting % both Elphick & Glencore had veto powers over deals/progress. Which is exactly why I state - we dont know who is responsible for the failure to secure a deal in the last 13+ years - except we do know that no deal has occurred.
Regarding full ownership being on sale = of course it is. IMO this what it is all about they are trying to eke out the best possible deal they can from the Chinese. Time will tell.
J. a few points...
"Clearly they would prefer full ownership & sole control - which is on offer here" ..is it??? Err, at least not publicly.
Glencore were the majority controlling partner for the vast majority of ZIOC's time, yes "option value", that stands (cannot simply be shrugged off as 'throwaway'). When they incorporated into the company very recently, even then the unpalatable strings were attached of "marketing rights". Plain to see where the big obstacle was and is, imo.
Agree to disagree. Anyway, that is all history, I am supremely confident in this going forward..
ATG. Calling it option value (actually I believe for way less than a decade, a throwaway comment by Glasenberg) doesn't imply they were responsible for deals not occurring, it equally could have been Elphick (having not sold out at 156-222p) having his sights on a valuation above what any potential strategic investors were prepared to pay.
This project remains a perfect fit for the Chinese - already responsible for power & the entire project EPC & taking the financial risks for both. In various remarks on Simandou I have noted Chinese complaints about the extent of their equity interest/offtake vs their financial risk & having to accept joint management of the project with RTZ. Clearly they would prefer full ownership & sole control - which is on offer here (unlike Simandou). Tactically a potential buyer would ideally want to deal ahead of the public release of an FS (when it would potentially draw in other bidders) so I also view the next couple of weeks as extremely interesting - external events aside.
J. Fact is, Glencore called this "option value" for well over a decade. Agree to disagree 🙂
ATG. Actually we dont know where the delays in this 13+ year process have occurred - it could be Glencore, it could be Elphick - most likely its both. But Elphick is Chairman & has the main executive responsibility for this project, it is a minor matter for Glencore. We know there was interest by a Chinese consortium & by the Japanese in the last 5-6 years, but nothing happened.
I share the positive hopes regarding April but we need a deal ASAP before external events intercede. Elphick/Glencore can tailor their demands to get this over the line - between them they control price, structure, offtake. What they cant do & what concerns me most, is they are powerless to stop big external issues - a ME war, a collapse of the iron ore price or a coup/civil war in the Congo - all of which could permanently derail any deal again.
Fingers crossed that ZIOc stick to their word and actually make the FS public before the end of the month
Indeed Marcus, small top up for me come Monday. I can only see the SP strengthen going into next week as we near the FS reveal and strategic investors.
12 working days to updated FS and potential news on Strategic Investor(s). It could come any day!!
This goes up next week, end of.
To be repetitive. To be fair it is not Elphick where the delays over time lie, Glencore has always called the shots. We accept whatever Glencore accepts. Plus there are plenty of other stranded African iron ore projects out there, Zanga is not unusual.