Seems the Chinese have a reputation to hold out for the last...

Seems the Chinese have a reputation to hold out for the last possible moment to maximise their bargaining power. I just hope they are not holding out for an ownership stake. Also from the following article, China seems intent on reducing the BHP/Rio domminance on IO prices, this also would go in FMG's favour, cause I think the last thing you would want to do is make your customers angry enough to look elsewhere for your product, I am sure BHP/Rio execs are aware of the slippery slope they may be on if they don't make some sort of concession, assuming they are not already past the point of no return.

http://iphone.theaustralian.com.au/stories/54618#__0
China seeks stake in Minas Rio
September 29, 2009, 12:00AM
CHINESE companies have approached Anglo American about taking a stake in the planned Minas Rio iron ore operation in Brazil as they look to secure supply from one of the world’s biggest new mines and encourage production from miners other than the three giants, Rio Tinto, BHP Billiton and Vale.

Anglo, the world’s fourth biggest iron ore producer after the big three, paid $US7 billion for Minas Rio in 2008.

Since then it has boosted the iron ore resource there from 300 million tonnes to 1 billion tonnes and says it has potential to increase this to 7 billion tonnes.

“We have been approached by quite a number of possible partners very keen to get in with us,” Anglo chief executive Cynthia Carroll said yesterday.

She said Chinese groups were among potential investors but Anglo wanted to do more work on development plans and capital requirements of future stages before selecting a partner.

Anglo plans to begin producing 26 million tonnes of iron ore a year from the mine from 2012 and then ramp up production to about 80 million tonnes a year, which is just under three-quarters of the current capacity of BHP’s Pilbara iron ore network.

China is keen to secure supply for future demand and, as evidenced by its support of Andrew Forrest’s Fortescue Metals Group in Western Australia, wants also to encourage growth from producers other than BHP, Rio and Vale, which control 70 per cent of the world’s seaborne iron ore.

“Iron ore demand out of China for us in particular is at record levels – they can’t get enough,” Ms Carroll said.