Rio BHP helps create Chinese Pilbara

If I were Colin Barenett, I would be very anxious about AGO falling into Chinese hands. Notice the very interesting timing of the Chinese announcement of domestic IO subsidies - as if the Chinese haven't been subsidizing their IO miners for months where the bulk of China's IO production are north of $100/T. (Perhpas the Chinese want AGO bond holders to know IO price for sure won't rebound given that $1/T subsidy that will now save all those $100/T + producers).

It is pretty clear that with WPIOP combining with NWIO (totally in Chinese hands), China will be able to justify to fund her own rail (or monorail) /port for a 100MTA Pilbara resource. Even FMS could be part of the wider game plan for an even bigger Chinese Pilbara.

If China (CITIC) having spent $12 Billion and hundreds of millions more (right now) to beef up $120/T Clive Palmer special that is producing next to nothing in order to secure long term supply, then why would China (via Wah Nam with mysteroius Chinese shipping benefactor) who wanted so badly to mop up the resource and port allocations of Ferraus (FRS) and Brockman (BRM - now BCK) in a combined takeover now NOT take over the lot (including AGO) now.

Why allow a company in production (14MTA DSO) with all-in-cost half that of Clive's baby only to be shut down (that's another 14-15 MTA going to BHP/RIO) and with bits and pieces sold off and the 46MTA of port allocations going to BHP and Gina.

There are a number of KEY players who would not want to see AGO going to the Chinese.

Hence, I expect the suspension may last longer than just 2 weeks.

I still hold some AGO enough to be interested in how things unfold.

Good luck to holders.