Major everyone knows high grade DSO is preferred. We all "wish"...

Major everyone knows high grade DSO is preferred. We all "wish" GBG had 1 billion tonnes of high grade hematite!!!
However this isn't possible, all of the high grade deposits are held by the majors. I believe WMC mined most of the large high grade hematite deposits in the midwest.

It wouldn't be possible for Ansteel to secure a large scale, high quality hematite deposit unless it was in Africa (SDL for instance). However significant risk are attached to Africa, its unstable, and always has been. Not to mention the lack of Infrastructure for a lot of these inland deposits.

Ansteels options were to secure:

1. Large high grade Australian magnetite, with significant mine life.

2. Small scattered deposits of high grade DSO, which are inefficient and expensive to mine.

3. Large low grade dirt from the Pilbara (assuming it could even reach a port) or Midwest.

The point of Ansteel to go abroad was to secure its future IO needs, hence remove its dependence on the majors.

The obvious option was to secure a large scale magnetite mine because it would have the highest quality and longest mine life. Ansteel consumes and mines the product so they are familiar with the product, GBG was its pick.

The safest option to pass the Australian red tape was to setup a JV with an Australian company. I'm sure we would have been taken over however the FIRB wouldn't approve it. Why else would Ansteel provide all this finance when they could have simply taken over a magnetite junior?

Once the relevant approvals are given an investment in Australia is safe, unlike Africa.

Major, I have a question. Can you name an Australian company outside the majors with a 1bt 65%+ deposit of hematite?
__

FYI: I need to catch up on this forum!!! I haven't read a lot of this.