The head of the Pilbara's next iron ore producer has added his weight to suggestions that consolidation of the junior iron ore sector is inevitable.
BC Iron managing director Mike Young also flagged the group was already considering growth plans, saying it had looked at and discarded some potential acquisitions.
Mr Young said the realities faced by the juniors, particularly in terms of access to infrastructure, would ultimately drive them into one another's arms.
"It's happening, so it is inevitable," he said.
"The thing is I think you'll find that some of the juniors are realising that to build your own infrastructure you need a lot of tonnes."
He said BC had been "lucky" to do an infrastructure deal with Fortescue Metals Group, which will see the Andrew Forrest-led miner take up a half share in BC's Nullagine project, but other juniors would not necessarily be so fortunate.
Talk of consolidation in the Pilbara has been gaining momentum in the wake of China Railway Materials' swoop on United Minerals Corp and FerrAus and Atlas Iron's proposed tie-up with Warwick Resources, all unveiled earlier this month.
Mr Young said BC, which is targeting first production from Nullagine in the second quarter of 2010, was on the lookout for possible acquisitions.
He did not rule out acquisitions of projects or companies but said any approach would be on friendly terms.
"The thing I find is that once you make the jump from explorer to producer people come to you," he said.
He also suggested BC could look at bulk commodities outside the iron ore sector, either in Australia or overseas.
Production at Nullagine will start at a rate of 1.5 million tonnes a year before ramping up to 3mtpa by the fourth quarter of 2010 and ultimately 5mtpa, subject to infrastructure upgrades. BC started trial mining at its Nullagine project late last week.
UMC Price at posting:
95.5¢ Sentiment: Hold Disclosure: Held
