The ally with Vale is the 1st big move from China, a counter...

The ally with Vale is the 1st big move from China, a counter attach on RIO and BHP's strategy of eliminating all other suppliers by oversupplying. Vale does not have low cost margin as RIO and BHP and was stretched balance sheet. That is the reason they choose to cooperate with China.

China does not want to put all eggs into a single bucket. They are also aiming at the IO companies in Australia, circling around them and waiting for the opportunity, all the junior miners are easily to become take-over target. Nobody wants to sell precious Australia mining assets to foreigners but the BHP and RIO's stupid oversupply strategy are forcing them to sell, look at what ARI and AGO is doing now.

BHP and RIO want to shut down all the junior miners, but the fact is that ownership of Australia junior miners are being transferred to foreign companies at throw-away price. ( A lot of high cost state owned Chinese miners are still running ). That has happened in 2008, a number of junior miners sold to China. The history just repeats.