Fighting for resources in the mining industry

November 17th, 2007

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In our previous article, Rising metals price=rising mining profits? Think again!, we mentioned that

… What this means is that the Australian economy is running out of resources to continue every project and production growth in the economy.

Today, we saw this article in the mainstream media: Fortescue ups ante by challenging Pilbara rail access. It says,

FORTESCUE Metals Group’s battle for third party access to railway lines in Western Australia intensified yesterday, as the iron ore explorer sought rights to a network near a massive new deposit.

As economic resources becomes more scarce, we can expect to see some companies that own valuable resources to hoard them for their own profitable benefits. Others which do not have these vital resources will get into cat-fights to get them.