RE: PowerChina - our mine builder1 Apr 2023 12:51
ALB,
2 simple points;
1. If and when someone tried to take full control of KP2, the SP would rocket anyway (assuming the big boys wanted to sell); so, not peanuts any more.
2. If every Chinese construction co tried to buy every mining operation they were hired to construct, then nobody would hire them (assuming the license was not revoked in the process).
The Chinese will build the mine only if they can arrange finance by 3rd parties (not their own money) - the 3rd parties will lend on the basis of various criteria, one being who the construction co is (so obviously they will work with banks who already know them).
The offtake agreements are a usual market practice, based on market prices (see Emmerson's RNS) so again the Chinese are not using their own money.