dj market talk: few changes from rio/bhp iron

Mention of SRK:

DJ MARKET TALK: Few Changes From Rio/BHP Iron Ore JV - Citi

0109 GMT [Dow Jones] Citigroup says it doesn't expect any major changes to
different iron ore pricing system preferences - BHP Billiton (BHP.AU) prefers spot
market, Rio Tinto (RIO.AU) more contract, at least for the short-term, as a result of
planned combination of miners' Pilbara operations. "Divergent production
strategies (BHP maximizing output, Rio curtailing) will be more difficult to accommodate
although the non-binding agreement contains clauses that are designed to
accommodate," says Citi. Post 2013 benefits of lower capex costs should improve the
competitive position of JV vs Vale (RIO) and new entrants. No changes to forecasts, JV
main impact is through competitive landscape. China's options include overseas
acquisitions, increasing domestic production. Potential targets include Sundance
Resources (SDL.AU), Strike Resources (SRK.AU), Aquila Resources (AQA.AU), Atlas Iron
(AGO.AU), Rio Tinto's Simandou project. (EFB)

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