bhp on the prowl, page-16

A couple of things to consider:

1. If and when BRM starts to ship 10-25mt per annum, they represent a significant competitive threat to BHP.

2. If and when the BHP rail network is open to juniors, BRM represents a significant thorn in the side of BHP.

3. Many large companies take out juniors, not to progress the project as such - but rather shut it down, sit on it for the future - and take out a competitor.

All the above will be reveiwed by BHP in light of recent comments from Kloppers re:takeovers. In fact, for a few $billion, they could take out most of the Pilbara juniors and relieve themselves of significant grief going forward. Whether the Competition watchdog will allow this is another thing...