redsgr: you have a point. Part of the merger between RIO and BHP will involve some forced divestment of assets. Maybe this will include the rail line - but not sure. EU is looking at the merger, and further developments will occur in October/November.
Just to remind you guys what I posted a couple of days ago:
Marcus Randolph, BHP Chief Executive Ferrous and Coal, when asked on Wednesday about Mine Gate Sales with juniors, said this:
"We have already been approached by a few parties. We are completely open to that discussion."
When asked what is meant by 'Normal Commercial Terms', he said:
"BHP gets a return out of it, and it doesn't take away from BHP's ability to do business."
When asked about sharing the line with other producers, or letting them run their own trains or carriages, he basically said 'no way' does BHP support that. There is only one track, why should another producer put BHP's business at risk? What if an axle breaks - and halts transportation on the line?
Clearly BHP sees line sharing as a threat to their production process.
Joel
UMC Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
