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Kimball Hansen

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As important as the land exchange was, there are a couple of big milestones the company has to get past before starting construction. We have to complete the feasibility study, which the Phelps Dodge corporate board of directors uses to determine whether to release funds for the project, and obtain two important permits.

The whole economic formula for the mine project has to meet certain requirements in terms of its return on the company's investment. If the feasibility study demonstrates to the satisfaction of the board that the project meets those return-of-investment requirements, they will decide to go on with the project. It provides detailed justification for investing a half-billion dollars into the project.

After the final approval from the board, it will release the funds, so it's a big step, maybe even the biggest. It's not just a rubber-stamp process; the board will look very carefully at the feasibility study prior to making a decision.

One permit is for air protection and the other for water.

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