if W.A. is worried about the mining industry weathering future downturns in demand, it is in the public interest to have no duplication of infrustructure. Such as under utilised railway lines. I know nothing about port facilities over in W.A., but of course the same logic applies.
Selling at the gate to BHP, even if RIO ownes Shovelanna, which it doesn't and will not IMHO, would be PERFECTLY sensible, and in everyone's interest I expect. Eg: The industries, the public's and the Nations. Even in the interest of human kind and the natural world, assuming Shovelanna is extracted.
The only interests that do not benefit are those of the previous, (emphasis on PREVIOUS), lease holders. Though I could imagine a senario where they keep the lease and in future blow tens of millions developing it and then enter a disasterous period where demand for iron ore falls as world supply explodes.
Iron ore can't be different form pork or grapes.
In fact, that is my prediction. That the world is facing an unmitigated climatic disaster. ANd let's not bloody beating about the Bush. Climate change is a FACT.
And by the time RIO could ever be ready to exploit Shovelanna (6-10 years) the world WILL be a dramatically different place. Economically and politically and climatically.
The reality of climate change will then be fully appreciated. Though I predict 150% appreciated. And the supply of Iron Ore will have greatly increased. Russia for example is touted as a new supplier.
But even if in 5-10 years the mining industry (and RIO) can continue to operate unaffected by climate change, in a world that just keeps expanding and expanding indutrially, just like it is doing today, without any sense of economic self restraint, in the ruthless persuit of private profit in a cut throat competitive economic environment, as if the world was not natural but just some economic theory, then RIO might easily find Shovelanna becomes a noose around its neck after spending a fortune developing it independently.
But then stupid things happen all the time. Just look at OzJet. Ha! The very second I first heard of it I raise me eyebrows and jerked me head to one side. And every mention of its activity,as seen on TV, just kept reinforcing my initial impression. Though they seemed convinced they knew what they were doing.
Sometimes I think its one of the effects of TV. It keeps youngins, especuially boys, as perpetual children. But maybe it wasn't naivity that got OzJet started.
But I'm too stupid to understand how some people can make money by loosing it.
Eg: Perfectly good land at Pyrmont lying empty with a solid warehouse sitting on it. And yet, it is reputedly owned by quite old people.
Confusing, isn't it?
I hope CAZ runs a competition to rename the leasehold. Now, what would be an appropriate prize?
CAZ Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
