I now expect mmx/mitsu to put their rail plan on high priority super fast track and thus expect planning approval before end 07, construction to start by mid 08 and finish by end 2010-mid 2011. First railed mmx ore will go to geraldton port by mid 2011. Then to new oakagee port in 2012.
Yilgarn will be a long way behind in their construction if they are still able to finance it with a much lower volume than they had been planning for. But who now cares what yilgarn do with rail? All mmx should be concerned about is whether mmx can operate its own rail. So that is now settled. We dont need to be too concerned with the other miners unless they put up their hand to go with mmx.
Now the real fight will be who gets to build and operate oakagee port. Expect mmx management to operate in their current highly professional but careful manner and win this fight.
A particular problem is ownership of the port reverting to government, presumably when the iron ore runs out. This may be a bit short sighted by govt because as mines close over the next 25 years then it is likely that the port may fall into disrepair. But thats a long way down the track. But it is an issue that should be considered pre construction.
MMX Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
