Thanks folks. A few comments:The restriction that tanewi stated...

Thanks folks. A few comments:

The restriction that tanewi stated is critical, but furthermore Shagang has been reducing its dependence on GRR. The announcement in Nov12 was that the client diversification away from Shagang was good for GRR. Possibly, but I suspect Shagang would also prefer the freedom to buy on market as the long term IO price falls.

Multi suggests that Shagang wants GRR to focus on IO production. But Mehan stated on the BRR interview last month that "development opportunities in iron ore and steel making sector generally are difficult and limited", so GRR was "cautious" in investing here.

At the same time, GRR is investigating. Mehan said in January that: “We don’t have the expenditure requirements on Southdown after the revision and we have a good balance sheet, so it makes sense to look around. It’s been discussed but it’s still early days.”

Overall, Mehan is focused on improving Savage River efficiencies (important), but I think he also has an eye to some sort of diversification and that Shagang isn't opposed to this.