take over target, page-12

Hi Guys,

your numbers are only half right.

1. Atma: 1Billion = 1 thousand million. In the 'olden days; it used to be 1million million. Therefore, the bad news is that you are showing your age. The good news is that you are closer to being a billionaire than you think.

2. JoJo: BHP's Pilbara reserves are 10.3Bt (not 30). Link Here


3. Both BHP and Rio have done deals in the past to buy high grade deposits. As has been mentioned previously, Rio purchased an interest in Hope Downs and is intent on mining it as quickly as possible. Rio has bigger reserves than BHP. One reason RIO bought this is because it has low impurities.


4. BHP are ramping up production. They are exporting 150Mtpa, but soon this will be 200Mtpa, and 300Mtpa by 2015. BHP say that they can do all of this out of Port Hedland (but using RIO's Ports would help).

5. Using an average of 300Mtpa BHP's ore reserves could last:
------ 10,300 / 300 = 34 years.


It is actually a little worse than this for BHP, because some of their reserves are high Phosphorous. Haemitite may argue that a large amount of BHP's resource is at a Phophorous level above 0.1%, which would require blending (so long as there are enough low phos deposits around).


Joel