lets start afresh, page-5

"Given that BHP wants to increase from 120 to 300mt p.a

CVRD is going for over 400, RIO over 300, FMG potentially upto 200m t p.a....and lets not forget Mid caps not only those from Australia but from all over the world that are coming on board in 2010-2012."

This is a valid line of reasoning, however the reason for the increase in demand for Aust iron ore is that the Chinese have completely exhausted their own supplies. therefore I think there is plenty of worldwide demand for fresh iron ore supplies.

In 1997 China was importing 50mpta. In 2006 that increased to 400mpta and looks like to increase further. The talk is the price will need to go higher even again the following year.

People need to start reworking the maths on this and see where it will leave some of these companies.