australian steel sector

Have a mate working in Orica's Gladstone plant and we were talking about if it a good idea to have a Steel plant in Gladstone since there is also major coal terminals there.

My mate spoke about Boulder Steel and how they have a plan at the moment to do just that.

My curiosity is that presently the existing players Bluescope and OneSteel are making massive losses on their steel making division. OneSteel at least has the Iron Ore production line that makes money. Bluescope recently asked for more money.

The MOU with MCC ... Why would the Chinese want to build a Steel Plant here when its most likely cheaper for them to do it in their own country (I am assuming that MCC is going to fork out the financing here).

Also where is BSL going to get the Iron Ore (this was the other big issue). If BSL was dependent on a mine that is not yet in production (although it may have location and proximity) but starting up an Iron Ore mine is another heavy investment.

Does anyone know the details of the finances that BGD is using to justify their case?

Feedback appreciated.