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To: Spekulatius who wrote (48003)	5/16/2012 4:30:52 PM
From: Grommit	Respond to of 78475

>I think the failure to make the impossible happen is going to be used as an excuse to nationalize the mining operations from the companies in question as well... Here's 2 clips from PAAS conf call. sounds like they are working the issue and that they are not expecting nationalization. "It is important to note that we have succeeded in reducing our reliance on imported parts and materials by some 50% since we started operating in Manantial in late 2008. We believe these discussions will result in a more realistic expectation of Argentine supply development timelines, which will bring improvements to the current situation in the near future for all mining companies who currently operate in Argentina. Q: And just lastly, you talked about a 50% reduction in import exposure. What's the exposure now? And is there a level of exposure to imports that management has a goal in terms of being comfortable with? A: That 50% reduction went from $25 million down to $12 million for those materials and parts. Our goal is to make sure that we keep quality parts and materials that allow us to operate our mine effectively and efficiently. And that's been our challenge now is trying to push through that barrier where we're at to get the quality parts that we need to operate. And what we're finding is those that have attempted to replace some of our parts, they haven't always performed the way we'd like. So there's 2 things going on as the Argentine suppliers are trying to improve quality of their supplies and as they realize what they can and can't supply, they're starting to release and allow us to import those things they can't and they recognize they can't. So what our goal is long term is to continue to work with the mining association in Argentina with the secretary of mining, with the production ministries and try to optimize and expand their capabilities to find better mining operations in their country...