the short-sightedness of this deal, page-3

RWEmerson,the big 3 will have studied each possible IO expansion scenario in depth to see what the best play for them is. The larger IO miners have huge IO resources still to be tapped in Australia and South America, where infrastructure is already in place and expansion much more easy than attempting greenfield projects in untried jurisdictions. BHP alone has 20Bn tonnes of high quality IO sitting in Australia waiting to be mined. GJ has been quoted as saying that the area has the capacity to produce 100mt+ per annum, but global iron ore demand is around 2Bn tonnes per annum at the moment. This IO corridor in Africa is not going to be a panacea to break the hold the big 3 have on IO production and prices, even if all development goes exactly to plan and is done in a timely fashion, which is not guaranteed.