The itabirite resource is the often overlooked past of the equation (but I doubt the Chinese and the other interest parties have not been paying close attention to the itabirite resource).
The 800MTA of $21/T DSO is the icing on the cake. It provides massive right-now pay back for Stage 1 capex and fund stage 2. Stage 2 is cost competitive with the likes of MGX, AGO and BCI DSO.
Having said that, I think the Chinese values the ownership and supply (potentially a 100MTA wall of supply from the region) more than the global-lowest-cost haematite in pure dollar terms of what they otherwise have to pay on the spot market.
SDL Price at posting:
9.8¢ Sentiment: Buy Disclosure: Held
