sovereign risk

Colin Barnett better get the Chinese into Oakagee before they get anymore nervous about this federal government:

Carbon tax = more risk
Mining tax = more risk
American troops in Australia = more risk
Fair Work Act = more risk
Bob Brown and his crazies = pure danger

Compare this with West Africa where you can buy half the country, decide who runs it, the workforce costs you US$30 a month, and there are still vast high grade DSO resources sitting ontop of the waste that you guys call ore.

China Inc aren't just doing due diligence on Oakagee, they will be running cost-benefit analysis on building infrastructure globally. If it's the best (or one of the best) projects they will invest. Gindalbie can rail at 16mtpa before it needs Oakagee and SinoSteel will walk away if the numbers don't add up. Murchison can easily be left high and dry.

Time will tell.