Who knows what is going on in the negotiations but one thing is...

Who knows what is going on in the negotiations but one thing is for certain, IOH is a strategic asset surrounded by big players. In this instance, like selling a home, if the offer you have on the table isnt a killer one then you take it to an auction process to determine value. Further resource upgrades are only going to improve our bargaining position.

One interesting thing mentioned in the Ocean Equities report as mentioned by SuperWealthy is the fact that IOH could overtake Aquila in Pilbara resource. They are located close to Bucklands, and a development decision is expected for an Aquila/Baosteel iron ore project, with associated infrastructure in 2010. Being so close, IOH must have strategic value to Aquila, not only for the actual resource but potential economies of scale that a large resource could bring to the table in terms of maximising returns from massive infrastructure spend.

In this instance, you could quite clearly see a bidding war or at least a seat at the table when discussing potential access to new infrastructure. In fact the more I think about it the better it is that the exclusivity period has lapsed, as strategic value is going to be different for different players, baring a China meltdown of course.