rio option, page-26

Hi filcorp
What you say is correct about %'s but BHPBIO (including those they took over) got in first and pegged out the best land. I think that was some time in the late 50's. Mount tom price is now a hole.

RIO got in second.

FMS's long term ambition is to produce more than the other two combined. Take a look at the arial view of their wharf loading facilities at Hedland and compare it with what BHPBIO have. They even have pegged what's on the sea bed.

My personal belief is we would be better off joining a consortium and building our own gear. If you do that your PROFITS EQUALS INCOME MINUS COSTS. If you go in with any of the others it's a bit like doing business with the Mafia. The only reason any of the others will allow us on board is politics. They know politically they must share but in doing so will only do it in a Mafia like situation. We would have no control in expanding tonnage or varying tonnage.

If you view this from the wealth of the nation eventually a right wing government will see the country would make more money by forming a Pilberra rail corporation. It could double the throughput. Double the throughput with a bit of tax and you have a change in the wealth of the nation.

This is not small change, iron ore is selling at the moment for just under $200 per ton. Costs are probably under $50 per ton. Each ship loader loads around a quarter of a million tons in 24 hours. The facilities run 24x7 by 360 days a year less maintenance periods.

The facilities FMG are putting in are the latest state of the art engineering and are a long way ahead of what the old equipment for example BHPBIO are using. RIO are planning to run their trucks and trains without drivers. They are building the system now.