Gtsman,I wouldn't write of the iron ore just yet. While the...

Gtsman,

I wouldn't write of the iron ore just yet. While the current iron ore market is experiencing a downturn which is effecting volume now and will also effect prices, BHP still expects the iron market to grow:

BHP:

"Ogdens said the latest developments had not changed BHP's mind over expanding iron ore mining in the Pilbara region.

By 2012 the company expects to roughly increase annual output by 100 million tonnes to 240 million, then to 300 million in 2015, he said.

"The long-term story remains intact," he said."

Source: http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=73167&sn=Detail

I would really like to see the cost structure, now and with various stages of development, to determine if the iron ore in Chile is worh developing or not.

Remember, ADY management who had access to the detailed costings, choice to focus on the iron ore and paid US$15M to increase its stake by 10% in July 2007.

Using those historic price the 60% ADY holds would then have cost US$90M. I know price would now have fallen but it is still worth remembering what was paid back then. Using those prices, 100% would be worth US$150M or A$225M @ .67 exchange rate.

I am skeptical of its value but also have an open mind on the issue.

Regards

SP