RIO is getting spooked that its China-grovelling, Australia-smashing Pilbara killer project is generating negative press. Suddenly, the miner has launched a love-in with a prostrate, Ross Greenwood, to upsell the benefits.
But there are none, not for Australia, at least:
- An alternative iron ore pipeline this large risks emboldening Chinese military aggression.
- Coming at a time when the Chinese economy is post-growth and post-real estate build-out, it is an insane undertaking for price prospects.
- At the company level, Simandou dramatically increases RIO’s soverign risk profile.
