bhp & rio - only a handfull will make it.

Rio & BHP have both stated that only a small handful of Juniors iron ore hopefuls will make it.

However they did not tell you how they will do everything they can to make this prediction come true.

Rail Access - NO
Port Access - NO
Mine Gate sales - NO

Now in come the Chinese (CRM) with deep pockets, perhaps with a plan to build infrastructure.

CRM to get access to UMC ore - NO if BHP can help it.

In come BHP and make a premium offer on a stressed share price.
As Bungy stated the SP of a few Co's has risen some 20% since the announcement.

The short lived re-rating

If BHP & RIO stitched up a handful of the junior iron ore hopefuls that China are interested in then perhaps it would not be feasable for china to push for a rail/port system for all juniors to use.

All juniors will then be left stranded and BHP & RIO will say told you so.

IMO a long term re-rating in the junior iron ore sector will only happen if China is welcomed to the area.