http://www.theage.com.au/business/atlasaurox-merger-a-bargain-201...

http://www.theage.com.au/business/atlasaurox-merger-a-bargain-20100310-pzc4.html

This puts it all in perspective. The cost of merger is A$2.80 per tonne of extra iron ore shipped. It becomes even more of a bargain with the expected steep rise in ore prices.

We should not underestimate the importance of infrastructure on the iron ore value chain. Withought raii and port access all the juniors can do is dig out the ore but cannot deliver to market.

For me the key question going forward is not Ridley, Wodgina etc but what developments we have with rail access. AGO has a maximum road transportation limit of 6Mtpa into Port Hedland so in order to realise its ambitions it needs a rail deal.

Is anyone aware of whether there are any juniors with infrastructure partners to construct rail links into Port Hedland. If yes, then this is the next target and we can expect the premium paid to be even higher.

BR
Max