mention on business spectator this morning, page-29

Great discussion and some interesting variables canvassed. In my opinion it would not be in Australia's interest for SDL to sell out or to form a joint venture with a Chinese Government owned business. AS stated there are 5 of their companies showing interest in SDL. However, at the end of the day there is only one owner....the communist government which will dictate policy, planning and business plan should they get their foot in the door.

Yes, short term, current holders of SDL will gain and gain very profitably. However, once an asset of this nature, being one of the largest underdeveloped iron ore resource together with great quality to boot, is sold off the control and future profits are lost to investors within Australia. 30-50m tons per year production will pay the entire money needed to develop this resource within a very short period of time and the following years.... the profits for the next 20-30-40 years thereafter will be lost. Possibly tens of billions of dollars each year lost in profits to shareholders and to the Australian Taxation System. If we don't own the resource nothing comes back to Australia.

You then have the other difficulties of global price control; fair competition (owner buys and sells to itself); foreign influence by a communist country owned company over a much poorer country such as Cameron; and I am sure the list goes on.

Rio/BHP/FMG will be the big losers in the long term in my view if they do not seriously look at becoming involved. By all means do it as a joint venture amongst the big 3 or 4 Australian Companies. None of which are a buyer but purely sellers, together with modern history of building long term infrastructure, building partnerships with local and government for mutual long term benefits (training/ systems/long term planning, etc).

Please understand that I am NOT against Chinese investment....far from it. But to allow such as asset like this to slip away from Australia's investment community would be a serious mistake.

I repeat great discussion.