I could see one of the South African companies tying up the chromite resource and sitting on it in order to protect their current investments that amount to billions in physical infrastructure. The value of intellectual capitol and market developement is priceless. However, my due dilligence on Cliffs tells me they are very serious about developing the chromite resource in McFaulds. Their North American iron ore business is declining and they see this related commodity as the future growth of the company in their home territory. It will be a long road and require a great deal of commitment due to the cost of infrastructure related to ROF developement, as well as to whether they can actually open pit the resource. Without a 43-101, we as retailers can't get a comfort level on that possibility but Cliffs are undoubtedly privy to far more info than us. They have made a $200 million investment to start which was percieved by us all as a steal. They would have gotten it a lot cheaper if Noront had not interfered. However, it makes you wonder that if it was such a steal, why didn't larger majors enter the picture before this either with motives to delay developement or to seize the developement opportunity and redefine the ferrochrome industry. In closing, it is my opinion that Cliffs fully intends to develope the chromite resource.
