news from the north west.

I live in Karratha WA. Many of you have no idea of the configuration of BHP or Rio up here I can tell that by the questions that are being asked about the Iron ore business units of these two respective companys. Im not posting for the Newbys because they probably cant grasp the importance of what I am about to say. I am posting for the rational few who have substantial ammounts invested in this company and to whom adverse short/term results would seriously affect retirement/investment outcomes.If you can go longer term I think the immediate risk is greatly lessened although this is not investment advice.\

I do not Hold RIO shares nor have I ever directly. I have never directly not indirectly been employed by Rio Tinto/ Hammersly Iron or North.

I currently work in the resources Industry and have done so for 12 years.
Ship Loading at Parker Point, East Intercourse island and Cape lambert has virtualy ceased. Instaed of loading 4 ships a day the current rate is 1 per week. I confirmed this 2 weeks ago when I had cause to visit the Dampier Port Authority Control room. I was told that one major Iron ore recieval Point in China has a stockpiles sufficient for 12 months. This week I spent half a day at the Dampier Port Bulk Liquids Berth and no activity whatsoever was occuring at Parker point.I have been told that Brockmans Mine is being put on care and Maintenance. The 1500 full-time Rio employees from Brockman are being relocated to Dampier Port FIFO to build a 30 Million Tonne stockpile. The 1500 contactors who were staying at the accomodation at Peninsula Palms in Dampier are gone (Yep No-More).

I have been told that Rio has ceased hiring and that 50% of the contractors are gone and the remaining 50% may get the sack before Christmas. Mt Tom Price is closing down until late January. Employees have been told to go away until late January. They are taking enforced holidays and the company will pay no more than 7 days holiday pay as credit. Thinking people will be able to ascertain what this means to a bread winner who has just returned from holidays.

For the first time ever at Hammersley Iron/ Conzinc Rio Tinto the Christmas hamper has been cancelled. I can tell you that employees are GENUINELY concerned about further developments from this point.

Many of the stock traders wont care but what I am saying is that the happenings in the Pilbara is unprecedented and worrying.

I am posting what I know because when Rio says that there is some "trimming of production" YOU as a shareholder have a right to know that their obligation of full disclosure of information to you is a sick joke.