Im in greece at the been coming here since 1998,theres a strech...

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greko

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27/08/14

23:10

Post #: 13884076
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Originally posted by SilentO ↑

A nation like China is not going to risk its security and rising position amongst the worlds nations by shutting down domestic iron ore mines in response to the big iron ore miner's tactic of pushing more iron ore into the market. They will not leave themselves totally vulnerable to the potential for other nations to disrupt the passage of seaborne iron in the event of a military conflict. It is not a question of economics, it is a question of state security. The big iron ore miners will just end up driving down the price of their own ore and on a trading level will make Chinese steel manufacturers more competitive, putting pressure on other nations to impose tariffs on Chinese steel. That's why the biggest steel producer in the world ArcelorMittal has almost completed its goal of becoming fully integrated, that is, owning and mining 100% of its required iron ore inputs.

The iron ore industry will have to start learning from industries like oil, diamonds, potash etc, that the only way to control prices in an oversupplied market is collusion, with a healthy dose of production cut backs. Unfortunately the CEO's of Australian miners are arrogant grandiose people who have ruled the world for far to long and are not used to eating humble pie. They are in for a hard lesson. As far as SDL goes, generally the axe is wielded in this order; exploration, green-fields development projects, marginal operations, cut backs to existing production. Between the ebola virus and the shrinking iron ore price, the picture for African iron ore is starting to look bleak. Take a look at how London Mining and African Minerals are travelling nowadays. Sure you've got the best, lowest cost deposit in all of Africa, but SDL will need to be able to walk on water to beat the odds that are starting to stack up against it.

SilentO

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Im in greece at the been coming here since 1998,theres a strech of highway that hasnt been finished its about 15 kms long,be patient everyone the project will happen lets hope not as long the 15km stretch of highway lol

SDL Price at posting: 8.5¢ Sentiment: Hold Disclosure: Held
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Im in greece at the been coming here since 1998,theres a strech...

Top Stories

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Week 40 Wrap: China's nonsensical stimmy hype wanes (shocking!); HotCopper's picks; oil & inflation

BCI reaches close of funding facility for salt-first part of Mardie project

Recce eyes Indonesia for novel anti-infective as Indo-Aus ties grow stronger

White Cliff jumps 24% on 'bonanza grade' copper rock chips at Rae project, Canada

Neurotech knocked back by FDA as agency declares target condition not rare enough for special status

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Buxton projects new graphite province discovery at WA Narryer play

Cokal upgrades infrastructure for BBM ramp-up in Indonesia

Solstice Minerals to ramp up drilling campaign at Yarri Gold Project

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