onesteel bumbling along to no-where-land?

OneSteel are stuck with an old steel furnace and plant at Whyalla that can never catch up to China and Co and is set to struggle for as long as it exists.

Buying Hawks Nest, Peculiar Knob and a few other tenements in South Australia from WPG looks OK on paper; but is it?
Hawks Nest has a probable 800 million tonnes of iron ore but very much of it is low grade.
These tenements once belonged to Felix Resources (S.A.S.E.) and they with Ausmelt and an Indonesian State owned company have royalty rights over Hawks Nest.

Iron ore companies are under the cosh with share prices falling very quickly in the last 6 months. At some point there will be a turn-a-round as OST has been sold down 70% - market cap of $1.73 billion is asking questions though.