china has no choice but complete t.o

While there are some here who have little appreciation of the intrinsic worth and strategic worth of our company, the Chinese right now must be extremely anxious about making another wrong move. Fact (not speculation) is the Cameroon / Congo IO province can only be acquired via Sundance. All the chest beating by the NDRC is childless wishful nonsense about future oversupply. The Big3 is literally a cartel controlling 75% of seaborne supply. They haven't spent billions on expansion plans in order to win a race to the bottom in flooding the Chinese market at skinny margin so the Chinese can build up a strategic stockpile to further hurt their margins. The Chinese rhetoric smacks of fear as they know demand will grow a lot more and they underplay that fact. THINK: The NDRC just told the world China needs to import 50MT of additional IO this year (despite massive clampdown on property lending and measures to rein in construction....LoL! ) . The Chinese knows extra capacity does NOT equate to extra supply. While I have no doubt more supply will hit the market next year and the Big3 may allow the spot price to soften a bit (RIO is hinting that), the moment prices start to fall significantly the cartel will constrict supply. ALL of this can be done with subtlety. Holding back by the Big3 by a mere 2 MT per month of shipment already takes 70MT per Annunciation off the market having a huge impact on the sp. If sdl falls to the Indians or a western consortium, China is buggered from a resource supply security perspective as well as losing huge political capital in Africa especially in Cameroon and Congo forever.