In the Australian.If you want to read the whole...

In the Australian.

If you want to read the whole article..

http://www.theaustralian.news.com.au/business/story/0,28124,26218329-36418,00.html


BHP Billiton's bid for United Minerals could signal the start of a buying frenzy from BHP and fellow giant Rio Tinto on junior miners as they look to block China's move on Western Australia's Pilbara region.

Speculation: BHP's bid for UMC could trigger a buy up of junior miners in the Pilbara, analysts say. Picture: Bloomberg.
BHP’s $204 billion bid today scuttled China Railway Commercial Corp's (CRM) $27.2 million bid for an 11.4 per cent stake in United.

DJ Carmichael head of research Paul Adams said the Pilbara was “particularly hot at the moment” and he expected BHP and Rio to continue M&A activity in the junior sector to protect their long term interests in the Pilbara.

“We would not discount that at all, we think the whole region is in play,” he said.

“They’re looking to protect their long term interests in the iron ore market in the Pilbara.

“It’s a big strategy game and I guess the long term outcome will be determined by what happens in the junior end of the market.”

Fat Prophets senior resource analyst Nick Raffan said such a scenario “could certainly happen” as BHP and Rio look to control supply and pricing of iron ore.

“I’d be quite surprised if they weren’t thinking along those sorts of lines,” he said.

“I think the real risk is the Chinese get a real wedge in the industry so they start to become a real price maker through changing supply.

“BHP and Rio can control the supply if they control the deposits.”

A stock broker, who declined to be named, said emerging Pilbara miner Atlas Iron could be a potential target.