The key points of the Agreement Vale struck with the Gov. of NL are that they will commence Site Preparation on schedule and have the Final Plans submitted in March (as opposed to previously by the end of 2008) BUT negotiated two additional years for completing full development in exchange for making the final operation considerably larger than the previously agreed Tonnage through put.

The implications are two fold and both are very much in Vale/INCO's favor.

First, they get to conserve Development Cash in the initial phases while Global Credit Markets are expected to remain relatively shaky.

Secondly, they will then (2013) have much more potentially idle capacity at Sudbury and or their European operations.

The consequences of having this Sudbury capacity available mean they will be expected to start up a few new Mines in the Sudbury area or Contract supply from somewhere in close proximity to Sudbury. Thus, by 2013 VALE/INCO will have need for a new supply of Ore.

Wonder who could very well have sufficient Supply available by then?

Are there some others, other than Cliff, looking to the Mining/Smelting near future???

Are they sitting back and waiting?

Old Joe