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Business Sunday -

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(generated from captions) This program is captioned live. Welcome to Business Sunday. Hi there, I'm Ross Greenwood. the importance It's hard to underestimate Coonan's blueprint for media reforms. of Communications Minister Helen Australian, will be affected Every business, indeed every at stake. and there are billions of dollars at these reforms We'll soon be looking in the business - with two of the biggest players Foxtel's boss Kim Williams media buyer, Harold Mitchell. and the country's most influential we report on the company As well, this morning, talked about miner in the country - that's suddenly become the most Australian Mining Investments. the rise and rise then sudden halt of start mining properly? When would you expect to actually That's a good question.

Depends where we go to from here.

So how long is a piece of string? twice as long as half of it. And the answer is, it still doesn't affect me If the scepticism is validated

because I bought quite early. everybody wins. If the scepticism is wrong, And just for a change of pace - has oil problems, think again. if you think the world We visit an intriguing little town

to our global dilemma. that thinks it's got the answer A so-called bio-town has taken on a new odour. where the word gas We milk about 13,000 here. 1,000? and a lot of you know what. That's a lot of milk for every animal. Hundreds of pounds of it a week he sees fuel. McCloskey doesn't see waste, though, truck out of where the cows live It's all sucked up with a vacuum and we dump it in here. and we bring it back here much promise for farming communities, This is the technology that holds so its called an anaerobic digest. of the financial trough. Pig's gas - one way to get out Also, later in the show - basket case, Zimbabwe. we look at the world's economic Sunday morning it's Majella Wiemers. But first with the news on this Good morning, Majella.

Israel's relentless assault on

Lebanon has continued for a fourth

day with attacks expanding to

include targets across the country.

Overnight, highways and bridges

were destroyed as well as Hezbollah

offices in Beirut. An area near the

Syrian border was also hit adding

to fears the fighting could

escalate into a regional conflict.

The shelling, the bombing and the

rocket attacks gathered pace today

and the death toll continued to

rise. Lebanon said dozens of its

civilians had been killed. 15 in

one van carrying families fleeing a

village the Israelis had warned

would come under attack. In Israel

itself, Hezbollah rockets hit the

town of Tiberius, 22 miles inside

the border. Further than they've

managed to reach before. In Beirut,

the Israelis maintain their

bombardment of areas of the city

controlled by Hezbollah who are

refusing to hand over two

captured Israeli soldiers. The

Lebanese economy is paying a heavy

price. These men went back to their

shuttered hairdressing business to

discover the worst. A bomb

exploding nearby had destroyed it.

It's a story that's been repeated

across the city. The price in human

suffering is rising too. Each

attack brings a new stream of

injured to the hospitals here The

international community is calling

for restraint. So far, such appeals

have fallen on deaf ears. managed to escape war-torn Lebanon, A dozen lucky Australians have last night touching down at Sydney airport Thank God, thank God. of anxious relatives. and into the arms

but we're home, thank God. I'm still stressed out Yeah, like, we just left the border next minute it got blown up. and all we hear on the news Australian tourists in Lebanon They've left behind almost 3,000 Lebanese community now trapped and 25,000 members of the Australian the capital's airport after Israeli airstrikes shut down and closed national borders.

The conflict in the Middle East at the G8 Summit in Russia, has dominated discussions where world leaders are struggling

to halt the escalating violence. to agree on a solution the violence And the best way to stop

Is for Hezbollah to lay down its

arms and stop attacking. States, a strong backer of Israel, The issue has pitted the United state has been too violent. against those who say the Jewish during a brawl at a party Three man have been stabbed in Sydney's south-east overnight.

Police believe of the men were refused entry. the fight broke out after two

The incident sparked a riot - and damaged property up to 50 youths smashed cars in the Matraville area. of Pyrmont, And in the inner city suburb was stabbed in the chest and back an Irish tourist with a group of men. during an argument in hospital. He's in a stable condition has begun its journey back to Earth, Space shuttle 'Discovery' from the International Space Station. after successfully separating a final inspection Earlier, the astronauts performed to the aircraft's heat shield. to ensure there was no damage

at the Kennedy Space Centre 'Discovery' is scheduled to land tomorrow night.

and a driving try by Jeremy Paul The drop goal by Stephen Larkham

It was South Africa's second worst

ever defeat. The Wallabies saying

they had roughered from the loss to

the All Blacks last week. and a driving try by Jeremy Paul The drop goal by Stephen Larkham meant business. showed that the Wallabies It's a try too. (COMMENTATOR) There it is. This try by Greg Holmes confirmed it. Gregan! Oh, it's a try! sealed the match. Then Matt Giteau virtually and the Wallabies led 30-0. Only half-time, Giteau, welcome back. fleet-footedness. That's what he's in the team for - scored again in the second half. Man of the match Giteau gives it to George Smith, Knocked down and accordingly and the first receiver is Larkham. Here's Giteau. And now quick hands. the kick, the chase, the try! Rathbone for the corner, broke the back of the Springboks And this Mark Chisholm try and the record books. clear run. One to beat. Gives it back to Rathbone, And there's the try for Chisholm. Inside it goes. In rugby league, its finals hopes alive Parramatta has kept Warriors in Auckland. with a 20-12 win over the New Zealand by nine points, The Panthers beat North Queensland a spirited South Sydney 26-20. while Manly defeated Manly scored five tries to four against the Rabbitohs, including a hat-trick to winger Michael Robertson. COMMENTATOR: They have numbers. Robertson gets the hat-trick What a first half by Michael Robertson. But the Sea Eagles suffered a set-back with captain Ben Kennedy limping off the field with a suspected knee injury. Meantime, the Cowboys suffered their seventh loss in eight. Michael Gordon delivering the winning try for the Panthers in the final minute to put them within two points of the top eight. It's been a weekend of nail-biters in the AFL. West Coast beat Sydney by just two points, while there was only a one point difference in Brisbane's win over the Kangaroos. In the re-match of last year's Grand Final at Subiaco, the Swans were leading by 32 points at half-time. The Eagles whittled that away, to hit the front with just minutes left on the clock. COMMENTATOR: Stenglein, Stenglein into the goal square. It's a goal. The defending premiers missed a chance in the dying seconds to take the match. And the Eagles' hopes for a top-two finish remain on track. Taking a look at the weather around the country. And there'll be rain for Brisbane, Adelaide and Hobart. Morning showers for Canberra and Melbourne. And sunny in Sydney, Perth and Darwin. I'll be back at 8.30 with an update. But now it's back to Ross. Thanks, Majella.

Back in a moment with Foxtel chief Kim Williams and what the new media reforms mean for television. VOICEOVER: Because your FoodWorks is a local store, the people that run it are locals too. (Dog whimpers) to be part of our local community. So if there's something happening in your area that you think we can get involved in, pop into your local FoodWorks and have a chat to us and we'll try to help out. Davo, how are you, mate? Any way we can. QUIRKY MUSIC It could well be described as the biggest shake-up in the history of the media.

Helen Coonan's bombshell reforms have provoked a knee jerk reaction in every section of the industry - nowhere more though than in television. The implications of Coonan's proposals are being analysed and digested just what will it all mean for free to air for digital, for internet broadcasting and particularly for pay TV. With more digital channels on the way is it opportunity, or competition for Kim Williams, Chief Executive of Foxtel. Good morning Kim.

This is the whole thing, first of

all you will see new channels

coming out from SBS and the ABC. So

is this a genuine challenge to the

profitability and indeed to the

viability of Foxtel. Foxtel is a

company that relishes competition.

The reality is that it is not even

competition because until we see

what's going to happen with sports

regulation, there's no way of

understanding whether it is going

to be a level playing field or

weather we're going to be at a

disadvantage. At the moment I'm

feeling uncomfortable. Why the uncomfortable nature? Because

you're not certain what the

relegation for sport will be? We

are have the most restrictive

sports relegation in the moment and

the Australian Sports Subscription released a report which

demonstrated that between 2000 and

twif, only 16% of the sport on the

list was broadcast live by the

networks and 23% of the sport was

broadcast live, delayed or in

highlights form. That's totally

unsatisfactory. But Helen Coonan

says the anti-siphoning laws will

become a use it or lose it policy.

So under those circumstances, that

surely should play straight into

your hands? My discomfort arises

from the fact that there is clarity

and certainty for the ter he is

trial networks where they know they

won't have a competitor before 2014.

They know they will have gifted

services gifted by the Government.

And we have a review. Until we

actually have clarity on that,

you'll forgive me, I'll remain

sceptical. But then you see that

there will be new stations

potentially coming from ABC or SBS.

The free to air networks, seven Ten

and Nine have the ability to have a

new network. Do you think that the

commercial broadcasters will do it?

You have to ask them. Certainly the

performance to date in digital roll

out in the terrestrial format is

invisible. They've done nothing to

invest in new services. All of the

innovation and real service has

come from Foxtel. We've invested

over $600 million in enrolling

digital services to Australian

Idolians. We're running 130 Idolians. We're running 130 different channels, providing

interactive sport and voting and a

whole range of new demand services

that weren't in the landscape a few

years ago. The terrestrials have

been going for six years already,

we've been going for 2.5 years. And

Foxtel has 1 million digital

households. You said that Foxtel

could be profitable with more than

a million subscribers by June this

year. Do you think that's at

jeopardy with the potential rule

changes? Foxtel has passed the

threshold and we made a modest

profit in the last financial year.

We'll continue to work hard for

consumers because Foxtel is

completely focused on serving completely focused on serving

consumers and we'll compete with

every fibre of our being. But it is

difficult when the rules are

stacked against it. At the moment,

and I was thinking of an analagy on

the way over here this morning and

we're like the Socceroos where we

want to compete, we want to be on want to compete, we want to be on

the same stage but the referee is

favouring the big teams and in an

environment where you keep on

getting the last minute penalties,

it is a little difficult. We see

right now of course the C7 court

case. Kerry Soaks taking on every

media operation in Australia. Do

you think that the new laws could

prevent such disputes down the

track? We have the most restrictive

rules in the world. I'm all in

favour of freing up the system and

Foxtel has given the reality as to

what can happen with innovation and

investment. If we have much freer

sports rights regulations, we will

have a more competitive system to

do what has to happen which is

deliver for consumers. I repeat,

only 16% of the sport on the list

has actually been transmitted live

by the terrestrial system. That's

not in the interest of consumers.

One thing here is that clearly with One thing here is that clearly with the Internet and therefore

broadcasting will become more

prevalent, there will be even more

competition for you. A loft the

content will be free. Does that

make the pay television economic

model less viable in the long-term?

Unless there is change in sports

regulation, we clearly will be

having our backs to the wall. The having our backs to the wall. The

Internet for example is completely

unregulated in relation to sports

rights. Why should subscription rights. Why should subscription

television uniquely be excised from

the system and treated as a pariah.

It has to change and I'm sure that It has to change and I'm sure that

it will. The minister has

indicated that she has every

intention of changing it and we

intend to work constructively with

her to ensure that that happens.

Telstra, its 50% shareholding as

been in question for sometime. Do you think they're committed to

Foxtel? I think Telstra are

enormously committed as are the

other partners, the News and the

PBL partnership. Our company has

had the biggest single investment in

digital roll out in this country

and we'll continue to commit to and we'll continue to commit to Australian consumers. Thanks, Kim. When we return, we'll get a wider view of the Coonan reforms when I speak with Australia's most influential advertising media buyer in our Melbourne studio. Harold Mitchell controls Australia's largest advertising buying company. He is constantly in touch with all of the country's media proprietors and so has an intimate knowledge of every branch of the industry. So let's just get to the point. Harold, who are the winners, who are the losers?

Well, the first of the winners are

the people, there's no doubt about

that. There's going to be more

television, and more channels.

Different things to watch and it's

on the free to air networks in the

main. And this is where the pay

people aren't there. So the winners

are partly the free to air networks.

None of them think that they are

but believe me that that's the case.

It's the people and the free to air

networks and even the major media

companies. Because now that it has the possibility of almost anyone

buying any of the shares, the share

values will go up. That's already

happened. So there's plenty of

winners in this. So not too many

losers. I think probably Kim

Williams and Foxtel are amongst the

people who didn't win quite what

they wanted but they're not real

losers. This is the clever thing

that Helen Coonen has done. But

this is the interesting thing.

Because it is owl about doe. And we

see across the television network,

even this network going through

cost kusing because there's not

enough advertising dollars coming

through the door. Advertising is

growing at 4% or 5% for more than

15% years. It occasionally drops

back. It dropped back in 2001. The

last six months it has been even.

But generally it grows ahead of GDP,

always been the case. I shouldn't

worry too much about the networks,

they're all making money. All of the media companies are making

money. These are incredible

businesses. So advertising has

continued to grow and will in into

the future. We done have any

concerns about any of that. The

cutting of costs, every business

has to do that. So the media

companies have been in a very good

market. They've had more than 10

years, 18 years in fact since 1987

of a relatively protected

environment. I don't think anyone

should be complaining too much. The

other thing also is quite clearly

you've got a situation where you

even spoke about it, the potential

for takeovers and tie-ups between

media companies. Which do you think

would be the most natural alliances

between the television and the

newspapers say? I don't know that

there are any that are too natural.

There was time in 1987 when Keating

brought in his rules which interestingly didn't really work.

He was looking to pin back the

really big media owners. That

didn't happen. What occurred was

chaos. I live thrued it, I didn't

enjoy it I can tell you. Dealing

with awful the change of ownership

there as there were different

companies changing hand. People

arriving who didn't know what they

were doing. Fortunately most of

them are gone. That wasn't a good

thing. But there was no natural

tie-up there and there isn't too

much into the future. There will be

changes of shareholding but I don't

know if there would be a change of

ownership. It might be that now the

Ten Network is in a different form

and can more conveniently tie up

the shareholding, it might be that

that's one that's vulnerable and

can't change. But I can't see PBL

wanting to buy Fairfax, they've

been taking what they want which

are the classified. I done know

that Fairfax would want a

television network. They've been

making rumblings of branching out.

Perhaps News Limited would want it.

I doubt that. News Limited are

making signs in America of selling

free to air television networks.

You talk about Rupert Murdoch and

clearly in that situation, he did a

change of heart inside News Corporation about the change for

the reforms. What was Rupert

Murdoch genuinely after and what

did he not get that made the

opposition change? If we look into

the future, ten years down the

track, the really big river of gold

that's going to be there is pay TV.

That's what is going to happen all

around the world. And Foxtel is at

the absolute centre of all of this.

What is at the centre of making

pay TV, Foxtel and Austar

important? The big sports. Ifs the

only way to watch the finals at the

end of the year was subscription TV.

If a million homes paid to watch

the final, that's $50 million. What

is at the centre of this? The

centre of making Foxtel pay off.

It's a big problem because what

Foxtel is. It's like billing the

railway lines. They own the railway

lines. That's the way of getting the

programs out. They want to control

them. Fox Tel as I've said to the

minister and others have, is still

a work in progress. I understand

that Murdoch wants more on his investment, but after all it will

be a tricky question because News

Limited own something like 70% of

all of the newspapers in this

country. That's a greater

concentration of newspaper media

than anywhere else in the western

world. So it's going to be

interesting to see how they can

mount aning argument. But you

talked about another side. The

model for television and radio is

give away the content free, get the

advertising dollars in the door.

You sell a newspaper, you get the

newspapers in the door. Tfg, you

sell the subscription. Surely with

the Internet t will be the

television or radio model that

comes to the fore? This is why we

never needed a fourth television

network. It was proposed that

there would be a fourth television

network. It was announced sometime

ago that that wouldn't be the case.

That's what happened is that the

Internet has arrived. Google

wasn't a word eight years ago.

That's how quickly it happened. It

now takes something like 4% of ad

dollars and said it will move to 8%

in the UK and 13% now. At a level

like that, it is bigger than the

magazine market and the radio

market and it is taking the real

chunk out of the other media. And

they're moving quickly. The big

media companies are moving into

the Internet. So talking about pay

TV, it will pay for itself via

firstly the advertising model, the

business model. Advertising model

will do that and people will start

to pay for content. We're seeing

Fairfax for instance, a very interesting measure with the

financial review, maybe the first

in the world to get content to pay

for it. The business model is a key

to it, you're quite right. But back

to who will win. The consumers,

voters if you like. Because the

real winners out of this have

continued to be the big media

companies with the free to air TV.

Thank you very much for your time. Coming up - Terry McCrann and his view of the media shake-up.

Plus - Zimbabwe, the basket case economy, where it costs a million of their dollars to buy a frozen chook. And it just gets worse. The supermarket shelves are full, but the aisles are empty. A bar of soap costs $300,000, cooking oil the same. Even toilet roll is now a luxury item. Wanna get a fully loaded Nissan deal? The Navara ST-R is fully loaded with a 110kW turbo diesel engine. ABN holders can get the best price ever from just $32,990. on the 7-seat Pathfinder, Get a fully loaded deal now at your Nissan dealer. But hurry. With offers like these, we won't be loaded up for long. And now with a news update, Majella Wiemers. Majella. Israel has expanded its bombardment of Lebanon, targeting ports, roads and bridges across the country as well as Hezbollah and Hamas offices in Beirut. Air strikes close to the Syrian border have raised fears of a regional conflict. The Lebanese Prime Minister Fuad Saniora has called for the United Nations to press for a ceasefire to halt the bombing. Meanwhile, some Australians have been lucky enough to escape war-torn Lebanon, touching down at Sydney airport last night and into the arms of anxious relatives. And the Wallabies have annihilated the Springboks 49-0 in the Tri-Nations Test in Brisbane, proving they've recovered from their disappointing loss to the All Blacks

last week. More news in the 'Sunday' program at nine.Ross. The first big impression of Helen Coonan's media revolution is that she is no Paul Keating. of Helen Coonan's media revolution is that she is no Paul Keating. For starters, Digital Action Plan, or DAP,

doesn't have quite the resonance of Keating's Princes of Print and Queens of the Screen. She certainly does have a plan. But are we going to put the digital into it any time soon. Answer, no. It's all slow-motion action like one of those endlessly replayed World Cup goals. Maybe television will go digital in 2010, maybe 2012. And then maybe not. Despite the frenzied belief among some sections of the chardonnay swillers, the entire media in Australia is not going to be swallowed by the evil Packer/Murdoch combine. Even if that swill, sorry swillers, don't understand, the world and both the Packers and the Murdochs have all moved on since the mid-1980s. James has not the slightest interest in snapping up John Fairfax and Rupert hasn't spent the past 20 years lusting for the opportunity to buy back into down under television. Building a fourth network in America, creating global satellite TV,

heading in China and India just to fill in time until he could come home to 'Rove' and 'Big Brother'. There was about as much real change in Coonan's media policy as in the leadership of the Government. Finally, absent, another 9/11, another rate rise in just over two weeks is now an absolute certainty. Why, even the Prime Minister was all but saying that Friday.

And what John Howard says goes. If not the man himself. Terry McCrann reporting there. It costs a million of their virtually worthless dollars to buy a frozen chicken in Zimbabwe, once one of Africa's strongest economies. It's become the world's economic basket case,

where crippling inflation is out of control - the result of the policies of President Robert Mugabe. All Western news organisations have been banned but a team from Britain's ITV went under cover in the capital Harare where only the very rich can afford supermarket prices. And as Martin Geisler of ITV reports, that leaves millions just trying to stay alive. On a waste land just outside Zimbabwe's capital, a whole community struggles to survive. These people were brought together a year ago when their government bulldozed their homes. Over the past 12 months, it's destroyed their hopes as well well. All around this country, there is evidence of a man-made disaster. 80% of Zimbabwe's population are unemployed and even those who have jobs are at no great advantage.

In the world's fastest collapsing economy. Cash here plummets in value every day. The banknotes have big numbers and expiry dates.

Money in this country has become almost meaningless. Two years ago you could have bought this chicken with one of these banknotes. Now it will cost you 20, a million Zimbabwe dollars. It will take a farm worker here two weeks to earn that kind of pay and next month, it is likely this will have doubled in price. The supermarket shelves are full but the aisles are empty. Even the basics have become completely unaffordable to most. A bar of soap costs 300,000. Cooking oil the same.

A bottle of orange squash, 500,000 dollars. Even toilet role is now a luxury item. A pint of milk at 100,000 dollars, or 50 pence sterling - is a day's pay for a manual labourer.

You need a wad of money to buy anything here.

Thank you very much. And that brings its own problems. Notes are in short supply. Even the banks are running out of cash. The border crossings are gridlocked as these secretly filmed pictures show.

Those who can are travelling to South Africa and loading up with goods that will hold their value. Farmers bring their crops to market and haggle for what they can get. But even that's becoming difficult. This man told us his profits don't even cover the cost of getting here.

And through all of this, President Mugabe keeps smiling. He says he has a plan. But this is a country of broken promises and shattered hopes. Most have stopped worrying what tomorrow might bring. It can't be any worse than today. And in the 'Sunday' program today. When we come back - why everyone's talking about copper and specifically the hottest speculative company in town - Australian Mining Investments. I guess the only advice would be from my point of view, would be I guess is for people to take the money and run because there are so many question marks, so many unanswered issues.

SONG: # Hallelujah! # Hallelujah! # Halle-lujah! The first water-based enamel paint from Dulux. Easy to apply, quick to dry, you can hardly smell it, Hallelujah! SONG: # Halle-lujah! # in the share price of copper explorer The astonishing 2,200% rise Australian Mining Investments Australia's own Poseidon adventure. has brought back memories of But with the stock still suspended, what's in store for this company there's much speculation about and its shareholders. has been delayed, The release of drill results the crest of a copper wave, and shareholders, who have ridden are anxiously awaiting the outcome. Helen McCombie discovers why AMI, to CuDeco this week, whose name was changed talked about exploration company. has suddenly become Australia's most for the AMI annual general meeting Shareholders came to town with locals buoyant about the future. If this is as big as they say or 1500 people within Cloncurry it's I say we get another 1,000 within the next couple of years a population of over 5,000. which would give us surrounding the company, But despite all the publicity at the AGM in the Cloncurry pub. not a lot happened to three directors Resolutions to grant share options by corporate regulator ASIC. were blocked withdraw the resolutions. Well, basically we had to the resolution for a name change. The only resolutions we had were And the vote was overwhelming. don't quote me exactly, It was I think, voted for it but around 29 million shareholders and 758,000 or 558,000 against it of the shareholders so it was around 95%

they're fully informed. so we believe who had made the journey For the shareholders of what had stirred them up. came the first sighting part of a world class copper deposit. What was allegedly This is 20 to 39 metres. to make sure that you see 20-39. I want everyone that's like the rich, That's just chelcapite this is like 16-17% copper. announcement by the company At the moment, there's been an that they have got a resource in late June grading approximately 2% copper. of 59 million tonnes of ore, about 1.2 million tonnes of copper Which by inference means underground. in the ground, undeveloped, as that can be developed, So until such time not much and a lot of money. it's worth anywhere between That's the concrete information. exploration property, not a mine. Remembering that this is an into a frenzy. that sent small investors Cloncurry in north-west Queensland sitting in the ground just outside of dollars worth of copper It was the prospect of billions

in the share price But the spectacular rise surrounding drilling results and the lack of information Australian Stock Exchange and ASIC. attracted the attention of both the

the shares were suspended. And ten days ago, The price chart tells the story. year, there wasn't much movement. For the first five months of the from 29 cents to $7.11 Then 8 weeks ago, the shares exploded

where trading was suspended. to maybe go up to or three times I was expecting the prices what I originally paid B

Certainly not more than that, to me anyway. that seemed like a lot of money probably roughly five times that, And now that they've gone up it seems quite extraordinary. Film producer Tiare Tomaszewski at her apparent good fortune. is still marvelling A novice to share trading, Investments about a month ago. she bought stock in Australian Mining experienced in the share market. My sister gave me a tip so I'm not She said she'd looked into them. seemed to be quite reasonable. She used to work in mining and they She got in a long time ago and lifted and lifted since then. and they just seem to have lifted 50 cents to $7 in a couple of weeks, I think if any stock goes from for a "please explain". the ASX is going to ask IT consultant Will Godfrey Mining Investments believer. is another Australian paying 25 cents a share. He bought in January last year about the current state of play. He too was unconcerned in the share Well, I've always been confident they had a lot of problems up there because my broker said their drilling I believe. with rain being able to do got hold and the media, And once the papers it became a bit of a feeding frenzy. something in the ground up there, But it looks like they might have hopefully. about the ASX's concerns? So you don't have any qualms its reputation and potential buyers Well I think the ASX has to protect in the stock. weren't up to standard, If the reports they were or they weren't, and I don't know whether I think the ASX has a responsibility with it at all. and I have got no problems the company has behaved properly? And you're comfortable that I think so. it is more sceptical But Fat Profits analyst Gavin Wendt, activities. about Australian Mining Investments of instances in my mind There have been a number proper reporting standards, of the company not adhering to

very strong investor sentiment taking advantage, if you like, of at the small end of the market, or less caused mayhem if fact they've more at the smaller end of the market. if you want to put it that way questions about the directors And I think it asks a lot of and their mode of operation behind the company of questions about the ASX and it also asks a lot over the last month because we've seen a situation has risen from 30 cents to $10 where the share price of the company at one stage. an ASX share price query, But nowhere along the line was there that's issued to companies. the normal sort of speeding ticket is what Wendt, The reporting of the discovery is particularly concerned about. surrounding that. There was a lot of hype over the top. I think it was very much reporting standards weren't met. Yet some of the I guess, any sort of exploration reporting One of the key things with regard to for things like cross sections, is that one tends to look and that sort of stuff. drill hole locations And normally that would be provided of the reporting requirements as part and that still hasn't been done to provide all that information. and the company had a month in which It's only now that the ASX seems to have taken action. Both the Australian Stocks Exchange and ASIC have been involved with the suspension of the company. And to me, the regulator is doing the right thing. They've got very strict surveillance and rules as to what is required under continue ious disclose. And in this instance, the company is clearly in the process of a drilling program, discovering a significant copper deposit and information is not yet to hand to justify the share price. So it's right that the shares are suspended until such time as information is full and frank. And stockbroker Malcolm Palmer says Australian Mining Investments is a long way from doing any mining. If you think of it in terms of market capitalisation, the value of the business, compare it to say Straits Resources. Straits Resources is a company that has coal mines and copper mines and gold mines. Substantial business, been around forever. Australian Mining Investments has got a hot exploration property but no mines as such, yet the companies are valued at exactly the same amount $700 million. Well, one's right and one's wrong. In my opinion, an exploration property should be valued at a much lesser amount

until such time as it is developed into a project. The frenzy surrounding AMI evoked memories of Poseidon. The prospective nickel miner where the shares rocketed from 80 cents to $12.30 in less than a month. Ultimately reaching $280 before heading downwards.

I guess it is, certainly there's been, I guess the environment is very similar. We've seen a resources boom. And you generally tend to find that these sorts of market anomalies or market situations tend to arise during periods when maybe regulators and I guess investors maybe have their guard down and they're very, very susceptible to these sorts of stories. There's a lot of hype in the market. So when one looks at the share price performance of AUM, the question mark over the results, it is very much reminiscent of Poseidon. Despite all the doubts, the small investors are confident about where they've put their money. I think there's always going to be scepticism about people making a lot of money or about significant changes in a financial arrangement. And that's really what this company is going through. I mean, I think that if the scepticism is validated,

it still doesn't affect me because I bought quite early. If the scepticism is wrong, everybody wins. So that's quite a nice situation to be in. I'll take some profit along the way, but you know, I think in all these mining booms, someone is going to strike a big deposit and maybe it is AUM, I don't know. Now the true believers will have to wait for the shares to be relisted. The company is hopeful it will be this week. And they'll be watching for the next step. What's next? We're going to now drill. We've just increased the drilling program from 10,000 metres to 60,000. We expect to drill here for at least the next 18 months. And then when would you expect to start mining something? Well, that's a good question. It depends where we go from here. So, how long is a piece of string? And the answer is, twice as long as half of it. An unusual turn of phrase like the company, hard to read at the moment. The shareholders will have to judge for themselves. Be aware that they are investing in something that is highly speculative.

And highly speculative means that the share price could bounce around by a matter of by the matter of dollars in a short period of time. And if you are going to invest, and I wouldn't call it investing because it is almost gambling, then be prepared to lose money. in such a speculative thing, at this point in time Well it is difficult

because the stock is not trading and we don't know when If it is going to resume trading. a lot of question marks. There's still would be from my point of view, I guess the only advice to take their money and run. would be I guess for people so many question marks, Because there are so many unanswered issues. Helen McCombie with that report. Coming up next -

to market these days. what little piggies bring coming out of their rear ends Several days ago the stuff that was is now this? a lot of electricity. Is that, after it's produced And it doesn't smell.

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The world is running out of oil. That's the claim made this week of Australia to the Financial Services Institute chief adviser, Dr Ali Bakhtiari. by Iran's National Oil Company everyone sit up and take notice, Dr Bakhtiari's warning has made even the Americans,

town in the state of Indiana but we're about to visit one small

partly solved the problem which thinks it may have

designated a bio-town. to the point that it has been sources of energy, The locals there are big on renewable including ethanol produced from corn, from an unthinkable source. and electricity are turning on the gas. The pigs and cows Harry Smith of CBS has the story. If pigs were people, would be a booming Metropolis. Reynolds, Indiana than 150,000 porkers around here. Best guess is that there are more

to rise, the human one is shrinking. While the hog population continues it had 10 gas stations. It had three barbers here in town, King Van Worst remembers the time farm town. when Reynolds was a prosperous And all of that stuff is gone and one gas station? except for one restaurant Right. It's a common story in rural America. are smiling these days Yet a lot of folks in Reynolds designated their little burg, because the State of Indiana has Bio Town. Do you think it's a good idea? Oh, one of the best. are all drying up. Why? Because these little towns breaks and good wishes, With a combination of grants, tax build a machine that takes pig poop - Reynolds - I mean BioTown is going to and turns it into methane gas. remember all those pigs it will go in one of two areas. Well, we believe that

an ethanol plant too. And they want to build that's made from corn. Ethanol, the high octane fuel

Thanks to a hefty discount from GM. That's pretty cool. now have flex fuel cars and trucks. Dozens of people in Reynolds And it runs on ethanol. Uh-huh. No, no. Can you get ethanol here yet? That's a little hang up here. Just an hour north of Reynolds,

Mike McClosky veterinarian turned dairy man than milk from his giant herd. is already getting much more How many head do you milk here? We milk about 13,000 here. 13,000. That's a lot of milk. And a lot of - you know what. for every animal. Hundreds of pounds of it a week he sees fuel. McClosky doesn't see waste though,

truck out where the cows live It's all sucked up with a vacuum and we dump it in here. and we bring it right back in here that holds so much promise This is the technology like Reynolds. for farming communities It is called an Anaerobic Digester. It's almost like a living being. inside of the digesters Because what you have of bacteria are these millions and millions source left in the manure that are consuming all of the feed and producing methane gas. inside an animal's stomach. The system mimics the conditions are at the end of the pit It's pumped from these pumps that

which is a 500,000 gallon tank. into the first cell And it takes about three weeks into methane gas. for the microbes to turn manure And the gas is really natural gas.

It's the same as natural gas. Natural gas.

Methane is the same as natural gas. to giant motors The gas is then pumped that burn it to generate electricity. So you can come in here and say... my cows are working overtime. Overtime, right there we go. At McClosky's Fair Oaks farm, enough electricity for 700 homes, enough to run his dairy. or in this case, and a cheese factory. A visitor centre 160 kilowatts and 160 kilowatts You can see we're producing out of each engine right now. It's an environmentalist's dream. thousands and thousands of cows, So of those coming out of their rear ends several days ago the stuff that was is now this. Is that. a lot of electricity. After it produced And it doesn't smell. It smells like the earth. And it is 100% organic. for our fields, It is a phenomenal fertiliser

and our alfalfa that we grow. for our corn that we grow

in Reynolds And that's why down the road

is such a big deal. being designated Bio Town of dying if it didn't have this? Would this town stand a chance

that way before this came in. It is pretty much going Really?

Uh-huh. Wow. is almost obsolete here. The industry It is Christmas 365 days a year. could do was fly. And you thought the only thing pigs for today. Well, that's Business Sunday with the Health Minister 'Sunday' is next candidate, Tony Abbott. and potential prime ministerial I'm Ross Greenwood. See you next week. by the Australian Caption Centre Supertext Captions HIP-HOP MUSIC and available with seven seats. The Toyota Kluger - all the power to all the wheels

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