pfhb - I think you are on the money.When RIO took over North...

pfhb - I think you are on the money.

When RIO took over North back in 2000, North Major Projects had already committed the lion's share of both funding and also many contracts for the West Angelas / Cape Lambert Upgrade project.

This included committments for enough concrete railway sleepers and track etc for a complete duplication of the rail between West Angelas and the Cape.

The project had great NPV when North had it; and when Rio came in, they integrated Robe with Hamersley Iron, and replaced about 300km of track at $1.5M/km with about 40km of sidings and small local duplications.

If RIO are looking at this, there are 101 synergies which they may be looking at with Rossing, and I do not expect they will want to be left with signed contracts and committments which do not fit with any synergies between Rossing and Husab; so I expect they will strike prior.

Additionally, RIO have enough cash to finance this themselves, and as such, would not want to be committed to paying for the finance externally (RIO Tinto Finance as I understand would still charge for the finance, but the proffit generated remains internal to the group)

Just my ramblings from what I saw a few years ago as a gingerbeer in the pilbara scrub. Apologies if my figures are out, but I think they are in the ball park regarding the rail issue at West Angelas)