MPAC has, since 2002, developed and established a strong relationship with the business community in Turkey. Having identified Turkey as a future “take off” economy with its economic factors of production revving up to come into their own in the global scenario, the Company forged ahead and developed strong business ties in all of the economic sectors of the country (for example, industrial, mining, and commerce) when the world was still in a “watching and waiting” mode. This bold step, based on careful and calculated socio-politicoeconomic analysis of Turkey by the Company, has been vindicated by the recent approval by the European Union (the “EU”) of Turkey’s bid to join the EU and, further, amply substantiated and amplified by the current economic indicators and international growth forecasts for the country. MPAC’s confidence in and its commitment to the future of Turkey, and its desire to be a part of that country’s economic progress, has been instrumental in providing the Company with the local valued persona of that ilk. This demonstrated sincerity and commitment by MPAC to the future of Turkey has enabled it to nurture and develop international business partnerships, hitherto lacking in a country that is blessed with plentiful resources. MPAC has been cognizant of the fact that Turkey, with a "young" population of over seventy (70) million, a high literacy rate (87%), a strategic geographic location – bordering eight countries and having access to four seas (the Mediterranean, the Aegean, the Marmara, and the Black) – is endowed with considerable natural resources. This is evident from its land usage: out of some 78 million hectares of land mass, 20 million hectares are arable, translating into more than one quarter of the total, and ranking Turkey in the top ten European food exporters.

With respect to mineral resources, this segment of Turkey’s wealth is relatively unexploited. In part, the reason for this can be attributed to the mining laws, which, until recently, did not readily encourage foreign exploration and development of the mineral resources. However, as of over a year ago (Spring of 2004), in tandem with its application to join the EU, these laws have now been amended and the Company was one of the first to avail itself of this opportunity.

In terms of mineral wealth, Turkey has 66% of the world’s reserves of boron, 50% of perlite, 20% of bentonite, 6.9% of barlytes, 4.9% of asbestos, 2.5% of wolfram and antimony, and 1.1% of bauxite, mercury and zinc. It is in front of this backdrop of the country’s palpable economic potential, that the Company selected Turkey as a best-suited candidate to manifest its Mission Statement. The country went through a virtual financial ruin in 2001, precipitated mainly by exogenous factors. Now, some four years later, through exemplary management of its affairs, Turkey has emerged as one of the world’s fastest growing economies – in the first two quarters of 2004 chalking up an expansion of 11.9% in GDP and 13.5% in GNP.

The velocity of the Turkish economy for the period cited eclipsed the OECD average by several fold, and challenged the country’s own all-time records for the first half growth established in 1990, for both GDP and GNP. The upsurge of 11.9% in GDP and 13.5% in GNP in the first six months was merely 0.2% short of the record in terms of GDP, while tying the record with respect to GNP. This vigorous tempo extended Turkey’s ongoing expansion to ten (10) consecutive quarters dating back to the first quarter of 2002. This ten (10) quarter run, through the middle of 2004 was the world’s second-longest uninterrupted expansion in progress at that time. More importantly, this trend has developed along with a string of exceptionally high quarterly growth rates: eight (8) of the ten (10) quarters showed growth rates in excess of 5%; six (6) of ten (10) were greater than 8%; and three (3) were above 10%.

These positive economic indicators, and the confidence in the sustainability of a positive economic growth rate into the future, is demonstrated by the government through the recent revamping of the Turkish currency by dropping the six trailing zeros and changing the name to Yeni Tûrk Lirasi ("New Turkish Lira" or "YTL") effective January 1, 2005.

This unprecedented economic progress, coupled with the European Union’s landmark decision of last December (2004) to begin membership talks with Turkey, means that the country has to move swiftly towards complying with the various EU regulations. This, in turn, creates further opportunities in the country through mobilization or re-structuring of its resource base in a meaningful way for the betterment of the country’s population. MPAC recognizes these opportunities and has selected this coal refining project, as the first of its intended similar projects for Turkey, with a view to improve the Turkish supply of coal energy while at the same time being very aware of the environment and delivering the best possible long-term return on investment to its shareholders, partners and associates.

The Agreement is structured so as to provide a win-win situation for the Coal Mine, MPAC, and the Turkish economy. The foregoing conveys the flavor of the type of reasoning that has made Turkey the country of choice for MPAC vis-à-vis its Mission Statement.