and so it begins......, page-4

Here's my humble longer term perspective on the situation.

Doom and gloom reigns supreme in the resources markets. Mines are being closed, companies going bust (BRW quotes Fat Prophets head of mining and resources that the 700+ ASX listed miners will dwindle back to 200-300), others selling assets. BHP too had to eat some humble pie by pulling the pin on Rio.

HOWEVER

Mining is a cyclical business and the cycle will swing back once again. Just this week Sinosteel has started discussions about expediting shipments and seaborne freight rates have bottomed out and are on the way back up. The queue of ships off Newcastle has doubled in the last 6 weeks.

BHP is now uniquely positioned with negligible debt and low cost assets that will remain profitable when many other higher cost mines will need to be shut down. BHP will be able to take their shopping cart around the world and take their pick of the best assets at fire sale prices. This is a buyers market and BHP can spend up. Rio's share of Escondida might be the first one.

When the cycle turns, IMHO, BHP will emerge bigger and stronger than ever.

DYOR