shagang may come up with the cash

http://www.sha-steel.com/eng/index.html

The more I think about China's strategy of diversification and (taking into account Shagang's increased stake in the company recently), it may just be the prelude to Shagang itself arranging the funding from say "China Development Bank" to develop Southdown.

Given Shagang desired share of the Southdown offtake is already 80% of 70%. There is no room for another steel mill in the picture. in fact, Shagang is bigger than many lesser known state steel mills.

If that's the case, 70% of Southdown + 100% of an expanded Savage River = 8mta of pellets.