resurgent rio bets on iron , page-13

I can't imagine RIO paying for AGOs infrastructure and mining capacity, in what would be close to a $2b deal, when they have their own.

They buy IOH's trapped ore in the ground at a discount (we are valued right now less than the UMC benchmark), build a rail spur to Iron Valley, process the ore themselves, use the extra port capacity they are spending billions on building, and they will extract far more of a multiple buying IOH then AGO.

Also, the native title lease shows that IOH starting the process of becoming a producer is a sound strategy to also get RIO thinking of the risk of letting this sleeping giant get away, particularly with the many players that surround us in the region who are no doubt also aware of IOH.