Hi Ant, re: the 10%: yes I thought that too when I read it. It might be an indicative figure by Barnett, however it does raise the question as to how much capacity is fair for third parties to utilise. IF BHP's Newman line is expected to take on both FRS and BRM, BHP might baulk at both. This may test the NWIOA if BHP insists on a fixed tonnage - a pro rata allocation of tonnage might not be satisfactory either to BRM or FRS....
I think FRS has more to lose than BRM - it is of a smaller scale and probably too far from Cloudbreak to be viable, whereas BHP is one of several options potentially available to BRM. Let's hope BRM & FRS don't get involved in a stoush, as they might if BHP tries a divide & conquer strategy. In either event, it's still too early to divine how this will play out. Next 3 months hold the key.
BRM Price at posting:
$3.77 Sentiment: LT Buy Disclosure: Held
