High grade ore deposits like this make up a massive percentage of ore mined and shipped at the moment - nearly all from the Pilbara. Only BHP, RIO and Fortescue are mining and shipping ore in any volume and they shipped 440mt last year between them.
RIO wants to ramp up production by an extra 100mt per annum by 2015 and I'm sure the others have similar agendas. The only deposits of any significant volumes available to anyone to buy are magnetite deposits with massive infrastructure costs, long production lead times and lower grades of iron. The Chinese with their long term strategy of securing supply are investing in these right now.
The IOH deposit is worth $40bn shipped at $100 per tonne.Day traders will look like clueless yokels selling IOH at $1.30 when Kerry Stokes announces he's in talks with someone or other about the sale of IOH's deposits.
IOH Price at posting:
$1.27 Sentiment: Hold Disclosure: Held
