GWR will only have a small ammount of tonnage ultimately at the 67%fe range
but as pumpkin says blending is definately a good option.
Remember that the Fe BHP and RIO ship is around 62% at best from the pilbara by and large.
The yandi stuff is 58% (very low impurities). FMG is lucky to be 60%.
Point is - GWRs stuff really is a premium product.
I think just like the pilbara the juniors in the mid west are ripe for a consolidation.
Really if the Chinese mean business, and they usually do, it makes sense they buy the whole damn lot of em. Especially after the boom time price they paid for Midwest.
of course there would be foriegn ownership issues and im not saying that its likely they will buy them all but hell if they want to break the stranglehold on Fe Ore - why not get the midwest exporting 100Mtpa.
The only way this will happen is with chinese captial.
GWRs deposits are not stranded. yes there is an (extremely) expensive infrastructure build required but China paid $1billion + for midwest. they are not going to let that rot.
The line will be built and sooner or later any 'stranded' deposit will find a chinese buyer who will want to pay for the extra spur line.
GWR Price at posting:
78.5¢ Sentiment: None Disclosure: Not Held
