The process of mining companies converting to dot coms continues. Most mining companies operate as No liability operations. This is an Australian invention to help mining companies raise exploration capital, ie; normally, as a shareholder, if a company of which you are a shareholder goes bankrupt, you as a shareholder are liable for the company's debts up to the par value of the shares, and not more. So if the par value is $1 per share, and you have 500 shares, your liability is $500. Of course mostly today you pay the par value each time you buy shares on market. Par value does not mean market value. Market value can and does charge daily.

Mining companies - if of "no liability" status - are different. You are liable in the event of a company default for the paid up value only, ie, mining companies may issue $1 par value shares payable in say 5 instalments of 20c each, making calls on the shares if / when more cash is needed. If the NL company does go broke in between, you as the shareholder are not liable to be called for the balance, in payment of the companies' debts - hence "no liability".

An NL company is not permitted by Australian Corporation Law to change the nature of its activities from mining without the consent of shareholders at an AGM. Hence the company if wishing to enter other business areas must call an AGM and convert its shares to limited liability status. Doing so it advertises its willingness to pursue other - these days - technology businesses and you know the story from there; share price excitement. To follow this watch the Monday AFR Market Wrap section under the heading "Reconstruction of Capital". MNG recently announced this intention.