The big one for us would be how GRZ is compensated if and when that happens. I think although each settlement is independent from one another due to differences in quality of investments and paid up commitments. It seems Chavez does not want to go the arbitration judgment way. It would be attract world focus and lose face big time if judgment was rulled against him.If settlement was forced on him his world assets and future income would be in jeapordy and subject to seizure. By settling he can streatch payment for many years. . I think it would also degrade his popularity at home is why he wants to avoid it, me thinks.

I also feel calmed by the fact that under the stressful circumstances of KRY they still have the presence of conducting a booth at the Toronto Trade Centre in March which is 2 weeks away from a possible file for arbitration. It may forbode good news in the offing for getting the permits to develop. Putting up their tent instead of folding it.

I don't think any arbitration filing went all the way.

Tuesday January 11, 2011 12:00 AM

Last week the Ministry of Science and Technology and Intermediate Industries announced an "amicable settlement" with Cemex and that compensation will be implemented within two weeks.

. Officials linked to the negotiations, said they are refining the details for payment. With this measure, the Mexican group withdrew the request for arbitration.

In August 2008 the National Executive made the nationalization of the cement and in this context, reached an agreement with Lafarge and Holcim, Cemex but negotiations were unsuccessful and was expropriated assets in the country.

Uno de los aspectos en los cuales hubo diferencias fue en el pago. One of the areas in which there were differences in payment. El grupo mexicano estaba solicitando 1,3 millardos de dólares, pero para el Gobierno ese monto era excesivo, y señalaba que la empresa no valía más de 600 millones de dólares. The Mexican group was seeking $ 1.3 billion, but for the government that amount was excessive, and noted that the company was worth more than $ 600 million.

. Now would be agreeing to a price more in line, which is under evaluation.

. In 2010 the Government launched the awards to Lafarge and Holcim cement in installments. The first payment was equivalent to 40% of the total and the remaining 60% must be paid in four years, without interest.

Holcim (the Swiss), the State agreed to a payment of $ 650 million of whom were already disbursed $ 260 million. With Lafarge (French group) was agreed the disbursement of $ 295 million of that amount has already been canceled $ 118 million. MAH