target potential, page-5

Just throwing some thoughts out there. To answer my question before, Rio has a aluminium smelter in Cameroon.There were plans to ramp up production there but i believe due to power problems and financing the project it has been put on hold.

Now lets put some names out there...

Starting with Rio Tinto(since someone else brought it up).

Then Chinalco, wholly owned by the Chinese government and trying to increase their stake in Rio Tinto.

The China Development Bank also wholly owned by the Chinese government.

If you take what the AFR said on the weekend as gospel, then they are hinting that if Chinalco takes a stake in Rio by capital funding then the China Development Bank will also finance many of Rio's projects.

This is where I see it gets interesting.

If BHP are also in there trying to get more IO reserves then the Chinese would be trying to stop this at all costs. The Chinese would not want to see the biggest mine outside of the top 3 fall into BHP's hands.

If Chinalco takes a stake in Rio then you effectively have a Chinese Government expanding the Kribi port and aluminium smelter owned by Rio. Then why not just add Sundance in there and either fund them for offtakes with Rio or the Chinese Bank just goes in there to make sure there is IO from companies outside the big 3 and makes sure the Kribi port is funded without delays.

Just some thoughts to fill in time :)