afr page 15 .....possible to target, page-8

MAJOR

GBG have allready said that they are eager to grow their fe business thru aquisition/merger.

with their existing credentials, management skill and project footing they will have many financial backers at their beckon if the opportunity arises.

imo there is a smorgasboard of fe juniors in pilbara and midwest that are ripe takeover targets that i dont think will be on the radar screen of the ore giants but are open to consolidation from their kin. only the strongest will survive.

any way it all gets down to location, resource size and infrastructure availability and the mind set of the management and who can win any arm wrestle.

but also more prominantly will be the chinese and they way they want to play the iron australian iron ore game. are the chinese steal mills in competion or in cahoots with each other? the complexion of the chinese steel industry will greatly influence any corporate activity amongst the new emerging australian iron ore producers.

GBG jv with ANSTEEL give it a very strong base to compound from in pursuing new opportunities.

not much is taking off for australian iron ore consolidation!!

BHP/RIO=mexican standoff
GBG/SDL=crash and burn
MMX/MIS=rock throwing
FAS/GWR=management shootouts
MGX/AZR=done deal !!
GBG/ROY=its a given
GBG/AGO=high potential for doing a deal.
GBG/GWR=high potential for doing a deal.
GBG/MIS=potential potential for doing a deal
GBG/MMX=fear and lothing


very comforting though we have steep iron ore and steel prices to look forward to as global needs expand.

on the balance of probabilities with very good iron ore prices to come for many years the need for consolidation and efficiency will not be a major issue to get hung up about. there will be plenty of room at the bar for every one until one of the players keels over dead drunk or looses a bet.