Mozart - I think that you continue to make good points. The time line (and cost - billions etc) for any "China-inc" to get the ore out will put BHP's next phase of mines years ahead, and years closer to being in full profit mode - ie having paid off capex. By this stage BHP would be able to simply drop its price (inflation adjusted it may still be higher) and make it uneconomical for another mine to continue - the Chinese are about business and a lower price would appeal to them (and would be their goal). Also don't forget that in 5-10 years their supply from India could well dry up with a growing demand coming from there as well as other Asian nations. It is a tight game being played, and BHP are in the business of making money now and positioning for plays decades away - such as fertilizers, food, and water - as well as the other traditional minerals. If there is one group on the planet who will not make a mad, rushed decision it is the Chinese.
I do not hold BRM but other junior Fe companies and am following this with great interest.
BRM Price at posting:
$4.25 Sentiment: None Disclosure: Not Held
