Yeah here is the article (extracted) from 6th December. Late...

Yeah here is the article (extracted) from 6th December. Late last year the Sham denied that they were going to rip it up ... as soon as that occured it was certainty :)

Confirms the sentiments that the Sham have some arms length backers with deep pockets.

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Sinosteel Tumbles in Proposed Iron Ore Deal with Brockman Dec 06, 2011



BEIJING, December 6, SinoCast -- Sinosteel Corporation, China's biggest iron ore trader, tumbles in the proposed iron ore deal with Australian emerging iron ore producer Brockman Resources as the latter's new management seeks to cooperate with Chinese steel producers.

Sinosteel Corporation last April signed a non-binding agreement with Brockman Resources, pursuant to which. Sinosteel's subsidiary in Australia will annually buy about 10 million tons of iron ores from Brockman Resources in coming five years, accounting for 50 percent of the iron ore production at Brockman's Marillana Project in Pilbara region.

Wah Nam International Holdings Ltd., a Hong Kong-listed mining and transport company, this May increased its stake in Brockman Resources to 51.99% from 46.24% and then appointed two non-executive directors at Brock Resources' board of directors. The Australian iron ore producer's new management prefers to cooperate with Chinese steel producers rather an iron ore trader and also wants to introduce several infrastructure construction companies to form an investment consortium, said a source close to the Australian iron ore producer.

The potential partners include Chinese steel makers Shandong Iron and Steel Group, Wuhan Iron and Steel (Group) Corp. as well as China Railway Material Group Co. and China Metallurgical Construction Engineering Group Co. that are well experienced in infrastructure construction in Australia.

Brockman Reesources' Marillana Project covers total 96 square kilometers, where the iron ore reserves that accord with JORC rules include 1.001 tons of clast and 48.5 million tons of iron ore deposit. Its major product is primary hematite at 61% grade. The project is scheduled to start production in 2013 with annual output of around 20 million tons.

The source reveals that Wah Nam International Holdings hopes to form an investment consortium comprising Marillana iron ore mine, steel mills and infrastructure constructers to develop the project. The Hong Kong-listed company believes that cooperating with steel mills can decide on terminal consumers directly and the proposed iron ore off-take agreement with Sinosteel Corporation will narrow Brockman Resources' profit margin as well as restrain its iron ore sales, added the source.

On the other hand, Sinosteel Corporation cannot provide infrastructure construction for Brockman Resources' Marillana Project, which will hold back the delivery of iron ores to destination market.

Brockman Resources together with another two Australian miners FRS and Atlas Iron Limited have established an iron ore consolidation, seeking a major breakthrough in infrastructure construction in western Australia that are dominated by Rio Tinto and BHP Billiton. The consolidation has been approved to construct a 50 million ton/year anchorage port at Port Hedland. Wah Nam International Holdings hopes to introduce Chinese steel mills and infrastructure construction companies into the port project.


http://www.sinocast.com/readbeatarticle.do?id=68105