Mr Gupta's Fe needs can be met by HAV, page-58

"Full vertical integration was the key at Whyalla: mining, blast furnace, and port operation. Owning the supply chain is critical to its continuing success"

Interesting article from Reuters, thank you.

This morning I went back and had a look at why Mr Gupta originally acquired the Arrium business during July 2017:

1. British billionaire Sanjeev Gupta said it was to capitalise on Australia's 10 year-plus infrastructure boom.

Mr Gupta said the pipeline of projects in Australia was immense as governments and the private sector spend up on new train stations and infrastructure, highways, bridges, airports and commercial infrastructure.

2. His timing was to capitalise on that wave of work, with the biggest problem being that the Whyalla steelworks was too small at the moment with annual production capacity of 1.2 million tonnes per annum.

"The problem in Whyalla is not anything but scale. It is sub-scale now and that's a handicap".

3. In the medium term of about three to five years, SIMEC was also closely examining a new state-of-the-art steel plant on the Whyalla site with a capacity of 4 million to 5 million tonnes a year.

https://www.copyright link/business...p-immense-infrastructure-boom-20170831-gy8bk4


Without a 'guaranteed' supply chain of magnetite for the next 50+ years, Mr Gupta is unlikely to justify the investment of billions of dollars in a new state-of-the-art steel plant on the Whyalla site.

Cheers

These are only my random thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.

HAV fanboy: still drinking the Kool-Aid