PS: Don't get me wrong; I think that we should be selling Iron Ore
Coal & Gas to China & Japan but we should own it and not the
buyers.
At present there are all types of sales (which are not at arms length)
from Australia to related parties in China, Korea and Japan.
While there is a benchmark FOB rate for 62% FE IO, there is no
way of ascertaining the grade outside the seller and the buyer
and, therefore the fair market value.
At present the majority of RIO, BHP is foreign owned and
FMG & MGX are essentially controlled by the Chinese via debt
and equity.
This excessive Chinese investment particularly in Iron Ore has caused
an oversupply and is keeping the ton rate under $100 despite China's
IO purchases being up 16.5% Year-on-Year.
Our weakness is that we leave Iron Ore marketing to miners who
are acting for their overseas majority owners while the Communist
Government of China orchestrates both Chinese buying and Chinese
investment in our Iron Ore production.
Lets face it, its easier and cheaper for China to make Billionaires
out of a few Aussies rather than make us all rich. It seems that
China wants Communism at home and a crony form of Capitalism
here.
