What Rio has done has been quite predictable and an obvious ploy. And I think the market is getting the implications of the IOH deal seriously wrong in thinking this is opening up the BHP/Rio rail networks to small independent iron ore hopefuls. IMO it is in fact the exact opposite. BHP/Rio have full railways but have ignorant politicians telling them that they must carry other people's ore which is just a nice piece of socialist thinking from school teachers/journalist who have zero business experience and could not run a corner shop let alone an iron ore mine. So what has Rio done? Offered to take a miniscule amount of IOH's ore (a deal between old time mates) and can now say - "Well we have done what you asked of us .... but sorry guys - our railway is now full so we can't carry anyone else's ore". Now BHP will surely scurry around and do a similar deal IMO. With whom? In all probability UMC as their new line will cross Railway towards Jumbo whilst their existing line is right there as well - and UMC has what the steel buyers want - DSO.
- Forums
- ASX - By Stock
- UMC
- rio:bhp carrying third party iron ore
rio:bhp carrying third party iron ore
-
-
- There are more pages in this discussion • 39 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add UMC (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
CCO
THE CALMER CO INTERNATIONAL LIMITED
Anthony Noble, MD & CEO
Anthony Noble
MD & CEO
Previous Video
Next Video
SPONSORED BY The Market Online