Sydney-based investment adviser Fat Prophets Mining has thrown its weight behind the stock of one of Australia's three steel producers. And the buying opportunity, it seems, has resulted from a period of adversity. Fears of a major slowdown in Chinese economic activity during the middle of the year had initially seen Fat Prophets tell its members to sell their stock in the integrated mining house and downstream processor. As these worries dissipated, however, OneSteel's share price appreciated, although this was then offset by a series of issues involving the company's Whyalla steelworks in South Australia - including a significant cost over run on a reline of the operation's blast furnace (which is subject to 33 million dollars of disputed costs) as well as the three shutdowns since the reline.
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