Kinbasket:I find it hard to beleive RIO will sell. Their modus...

Kinbasket:

I find it hard to beleive RIO will sell. Their modus operandi is to aqcuire, own and operate large, low cost tier 1 assets. We know they often do this in a JV manner.

Yes they have sold KAH, however that may well have been to resolve the complex cross shareholding which existed.

IMO (and of course I may be proven wrong) we will see either:
(1) RIO take a larger holding and ultimately we'll see either a 2 or 3 way JV (possibly with the Japanese)
or
(2) A 3rd party (white knight) come looking for the remaining 57% and form their Own JV.
(3) Taurus get the lot

For a whole lot of reasons I think scenario 1 is most likely, 2 unlikely, and 3 beyond the realms of possibility

As KC stated, there is no way RIO are going to become a contract miner for the Chinese on this one when they can make far more cash flow for the next 20 years from having substantial ownership in Husab.

Does anyone really think RIO S/H's would be happy with them paying $11/lb for Hathor (a resource which is hardly proven, small and laden with massive technical complexities) and then walk away from Husab when it is a perfect dovetail for RIO's global strategy?

For all of those small holders out there (I know the instos won't be reading this); think very carefully about whether or not you sell. Providing Rio and/or other lesser share holders do not sell, Taurus will never get 90%, so compulsary aquisition will not be a possibility. I for one would be more than happy to hold on and invest more if it means seeing healthy dividend cheques throughout the course of my retirement.