There are also large social overheads at Alco. Township management, for example, is a non-core activity. It must be outsourced. My point is that a merger with a large but poorly-run plant like Alco might impact negatively on the overall operations of Sunrise. The focus is different.
Mining requires optimum utilisation of capacity.
Smelting and refining require not only technological sophistication but also continuous monitoring of costs. An SBU, therefore, hardly fits in with our low-cost ambition. A merger, on the other hand, gives us the advantage of size, which is in tune with our global aspirations.