Rio BHP helps create Chinese Pilbara, page-4

Exactly the point, both Rio and BHP thought they can beat the Chinese, but I fear they miscalculated China as all iron ore companies are nearly SOEs.

Just think back in 2009 when iron ore prices was $62 per tonne. So how did the Chinese SOEs survive back then?

I totally believe your theory, China will have their hands on the Pilbara as the 3rd pillar supplement to Rio and BHP. I think FMG will fall to them as well.

Bad strategy when you think it works, but instead you will see falling earnings and outlook for both Rio and BHP. BHP will suffer more with PetroHawk. Capital expenditure will fall back heaps for both companies with lower cashflows and revenue due to lower iron ore prices.