the australian - china's pen for hire

http://www.theaustralian.com.au/business/opinion/fair-work-act-is-built-on-an-idea-far-distant-from-14-qantas-unions/story-e6frg9lx-1226201819199

The following editorial may as well have comes from the People's Daily.

Murchison murmur

A SPARE five years after boundary rider Charles Rasp stumbled across silver on the Broken Hill north of Mount Gibbs Station, a weary surveyor named Charles Crossland revealed a collection of magnetite iron ore deposits on Jack Hills ranges just north of the Murchison River. The golden days of Rasp's discovery ended generations ago but the company it famously spawned, the BHP Proprietary Company Limited, has been a been wellspring of Australian wealth since its formation in 1887.

But Crossland's magnetite remains firmly bedded in the Jack Hills, west of Geraldton.

And, given Murchison Metals confirmation yesterday that it is looking to sell its iron ore project and control of the rail and port project that would support the deposits' progress to mainstream relevance, it rather looks as if that will remain the case for at least another couple of years. Murchison delivered yesterday the firmest indication yet that it is close to running up the white flag on its dream of a half-share of a $6 billion-plus integrated mine, rail and port development, a decision arguably as inevitable as it is too late.

It is rare that big development tasks are seen to their conclusion by under-capitalised aspirants. More often the best-laid plans lead only to the most financially remunerative exit. And, frankly, for all the goodwill in the world, not to mention the support of Mitsubishi and the state government, the combined development tasks of the Jack Hills magnetite projects and a 55 million tonne a year rail and port development always looked beyond Murchison's ken.

An earlier exit might well have been a more profitable option.

The question is: who will step up to the Oakajee plate now? It has been suggested the Ansteel-supported Gindalbie Metals is a likely participant in Murchison's sale conversations, but I am not convinced as Gindalbie already has a heap on its plate with the $2.7bn Karara iron ore project.

To take up a senior place in the future of Oakajee would require further equity support from Ansteel and indulgence from the the West Australian and federal governments on dealing China Inc to a position of authority and into what seems an uncomfortable partnership with Mitsubishi.