RE:Positive Development Who posted this ? hmmmm? twas you ! ! being familiar with the concept of skimming all the cream, why aren't you a little suspicious of similar plans for scozinc if it ever restarts? I am. And fnc gets screwed too as a large shareholder of Edm. It doesn't have to a big company like glencore, it can be a little paper trading tiger with little more than a post office box in ZUG, Switzerland. Like say, mri trading or Astor holdings.
NORANDA AND TREVALI SHAREHOLDERS BEING SCREWED BY GLENCORE
Glencore owns 25% of both the Noranda Income Fund and Trevali Mining and controls both companies. Glencore has an offtake agreement with Trevali whereby they purchase all of Trevalie's zinc concentrate at a price that is based on benchmark treatment charges which are currently near $300 per tonne. Glencore also has a supply agreement with Noranda that is based on spot treatment charges which are currently around $100 per tonne.
Some of Trevali's zinc concentrate production goes to Noranda via Glencore as middleman. Thus, at current treatment charges, Glencore pockets $200/tonne and both Noranda and Trevali shareholders get screwed. This has been going since Noranda's original supply agreement with Glencore expired 4 years ago.