China, consumer of two-fifths of the world’s iron ore, is now consuming the companies that mine it. Next week Gindalbie Metals, a $170m Australian iron ore prospector, will ask shareholders to approve a cash infusion from China’s AnSteel (Anshan Iron and Steel Group), its partner in a cornerstone project in mid-western Australia. This is quite a turnround for Gindalbie. A year and a half ago it was considering using its shares to buy growth in West Africa; now China’s second largest steelmaker is set to tighten its grip on Gindalbie’s equity, almost tripling its stake to 36 per cent.

Similar fates await other mining juniors. With banks refusing project financing and equity markets almost nailed shut, many of the world’s 2,000 or so small and mid-cap miners are operating on the smell of an oily rag. Gindalbie had been romping through its cash pile – its burn rate in the three months to the end of December was up almost 50 per cent.