BungyYou wrote; If, or should I say when, iron ore prices start...

Bungy
You wrote; If, or should I say when, iron ore prices start to ease back, the juniors which are not producing will start feeling the pinch. However the ones with a competitive edge will have a far better chance of survival.

Q. Assuming transport issues are resolved, which juniors are more likely to succeed?

A. The ones with a superior product!!!!

A very valid point you've raised here Bungy. On ABC's Inside Business programme this morning the segment ran a story about third party access to Twiggy's railway and port facilities.

It mentioned that Twiggy does have an obligation to facilitate third party access to his railway and port facilities and for the time being he is spruiking this up and encouraging it.

But the scenario was raised at what would Twiggy's attitute to third party access be once the price of iron ore comes off. Once the price comes off Twiggy would most likely ramp up production to try and maintain existing profits for shareholders and with the increased volume of FMG product on the already stretched railway then this would obviously bring about a change in attitude to the extent of the friendship with regard to third party access.

The point you've made Bungy about high grade and low impurity product being a survivor I strongly agree with. If there is ever going to be any mine gate sales from a junior to a major it will be for the reason of the major wanting a superior blend to increase their overall grades and desirability in a competitive market. Now we all know that most of Twiggys ore is <57% and that most of UMC's ore is >60% low P low Si and low Al.

Ther is no need to be Einstein to work out the box seat UMC is now positioned in.