Papertigger, because BHP is a diversified miner, meaning it doesn't just throw all of it's capital at IO ventures. Did you see the huge shale transaction they entered into not long ago? Their board would have specific levels of capital they wish to employ into each area of their business, and with the IO projects they already are involved with in Africa, coupled with their expansion of the Pilbara, they have probably already hit their optimum levels of investment in IO projects. RIO is probably much the same, and they both have probably analysed what CAPEX it would take to get SDL's project off the ground, coupled with what it's going to cost to take over the company to start with, and come to the conclusion it's more beneficial for them to invest that money elsewhere (e.g. existing Pilbara operations or the tenements they already own). BHP & RIO are also outside the tent when it comes to Cameroon, at least compared to the Chinese, which is something elese they would have given consideration to.
SDL Price at posting:
44.5¢ Sentiment: Hold Disclosure: Held
