Another glorious day in paradise, enjoying a coffee overlooking Bondi Beach.
My attention was grabbed by an article on page 21 of the AFR today:
China's miner's eye African iron ore
Good read that basically says China is moving into West Africa in a big way with moves on African Minerals and Sundance Resources.
China's interest in Africa follows cost blowouts and delays in Chinese-owned mining investments in Australia.
In contract African projects are advancing quickly, also the freight advantage once enjoyed over such far-flung regions is disappating under the weight of China's investment in new ships.
Analysts says the investment in W Africa underscore China's appetite for taking on riskier projects at a time when conditions favour buyers.
China managed to secure 25 per cent of Tonkolili's offtake at a 15 per cent discount to market prices in return for providing much-needed development financing.
Analysts also predict supply constraints would continue and iron ore prices will remain around $140 US a tonne for the next three years.
Well worth the read...
SDL is not going for 50 cents..... mark my words.
Cheers,
Con
SDL Price at posting:
47.0¢ Sentiment: Hold Disclosure: Held
