local metals checked out

Could it bring even more opportunities for juniors like Ausst ? :)))))

Local metals checked out
Liliana Molina

June 14, 2006

ANY entry by iron ore giant Companhia Vale do Rio Doce (CVRD) into the Australian mining scene would challenge Rio Tinto and BHP Billiton's dominance of rail and port infrastructure in Western Australia, analysts say.

On a visit to Australia last week, CVRD iron ore director Jose Carlos Martins confirmed the Brazilian giant had Australian assets on its shopping list.

It already is exploring the Belvedere coking coal project in the Bowen Basin with Perth-based joint venture partner Aquila Resources.

The company previously has said it wants to reduce its dependence on iron ore sales from 74 per cent of total sales in the first quarter of 2005 to 60 per cent and increase its presence in bauxite, coal, copper and nickel.

Fat Prophets senior analyst Gavin Wendt said recent government decisions on rail access in WA had swung in incumbent's favour, making it harder for smaller producers such as Fortescue Metals.

"If there was a new major player that decided to get involved in our market that would be very interesting," he said.

"It would provide more competition. Would they have to build their own infrastructure or could they share with BHP and Rio, who I can't imagine would want to share?"

http://www.couriermail.news.com.au/story/0,20797,19462364-3122,00.html