Matmor in Australia

Hi all,

Have been looking at possible scenarios....the following is so obvious that it makes some sort of sense to me, and wondering if i am missing something.

There is debate about R&D funding and whether the benefits actually benefit Aus or India
There seems to be more and more interest in the coldry process within Australia, the Maddingly options conversion, and Victorian lignite developments to tend bear this out.
Matmor is considered by many to be a 'jewel in the crown'
The steel industry in Australia is suffering badly due to cheap imports and high costs - Bluescope Steel (the largest steel manufacturer in Aus- based in Wollongong) was given a lifeline recently - merely to survive.
There is a renewed push for state and government projects to utilize made in aus steel (whether this is political fluff or reality we are yet to see)
Once the raw material prices risé (ie iron ore and coking coal) then Bluescope Steels bottom line will start to look extremely shaky.
As the cost of Bluescopes raw materials are based in Aus $ - they cannot take advantage of exchange rate differentials
The abundance of lower grade magnetite...seemingly suitable for Matmor, is found in smaller mines - many of which are currently in C&M from N Qld right down the east coast to include Tasmania. These mines cannot export as the value of the lower grade product delivered china is hampered by shipping and handling costs (even at current low rates) - there is even a site at Cowra, NSW which is a short distance from Bluescope in Wollongong.....this mine has an estimated 7m mt deposit.

So i ask myself these questions:

Are ESI Aus talking to Bluecope (or indeed any other steelmaker?)
If not, why not?
Would putting Matmor into the mix assist with any R&D incentives - possibly for both ESI and Bluescope?
The future of steelmaking in Aus is a hot political topic, especially locally in Wollongong, so is this now a political football....and does any politician have the balls to run with it? (as if)