Hi everyoneThis is an intersting read from the "West Australian"...

Hi everyone

This is an intersting read from the "West Australian" regarding some of the activity in the Pilbara.

Consolidation in the Pilbara has moved into high gear after one of China's biggest buyers of iron ore unveiled deals to buy into two of the region's junior players and Atlas Iron launched a friendly bid for another.

News that China Railway Materials Commercial Corp was poised to emerge with nearly 12 per cent of United Minerals Corp (UMC) and FerrAus for a combined $39.8 million sent shares in the groups 6.9 per cent and 12.1 per cent higher respectively.

It also breathed new life into the share prices of other Pilbara iron ore juniors amid speculation the move could be a precursor to further acquisitions to justify a Chinese-bankrolled railway line to Port Hedland.

Shares in Aurox Resources climbed 2¢ to 32¢, Brockman Resources was 4¢ higher to $1.63 and Iron Ore Holdings closed up 3.5¢ to 75.5¢.

Speculation about CRM's long-term plans was further fuelled by comments from UMC chief executive Matthew Hogan, who said that "given their infrastructure capabilities (CRM) may be involved in infrastructure solutions to assist the commercialisation" of the UMC's Railway deposit in the Central Pilbara.

The Phil Crabb-chaired UMC has been looking at a three million-tonnes-a-year start-up mine that would see it truck ore from Railway to port.

Similarly, FerrAus managing director Mike Amundsen said that while the group hoped to strike a deal with one of the region's bigger players over infrastructure access for its deposits in the East Pilbara, CRM's presence on its register could "bring other possibilities".

FerrAus and CRM have also agreed to team up to look at other opportunities in the Pilbara and CRM will assist FerrAus in sourcing additional finance. Another Chinese company, China Western Mining, already has a 9.9 per cent stake in FerrAus.

But commentators said any plan for China Inc to fund a new railway line through the Pilbara would require further big deals to make it viable.

Under the terms of yesterday's agreements, CRM will emerge with 11.38 per cent of UMC through a $27.2 million placement at $1.35 a share, plus options. It has also signed a 10-year 3mtpa offtake deal.

It will also take up about 12 per cent of FerrAus through a $12.6 million placement at 55¢ a share.

UMC closed 7¢ higher to $1.09 and FerrAus leapt 6.5¢ to 60¢.

Separately yesterday, Atlas Iron's $65 million one-for-three scrip bid for Warwick Resources was greeted by market watchers as logical, given Atlas has cash flow and a railway to take its product to market, while Warwick's resources could substantially boost Atlas. Shares in Atlas closed 10.5¢ higher to $1.775 and Warwick surged 10.5¢ to 57¢.

Atlas already owns 22.25 per cent of Warwick, which recently picked up Hannans Rewards' iron ore rights over its Marra Mamba Jigalong prospect close to Warwick's flagship projects, south-east of Newman