Small miners granted rail access
The Australian Competition Tribunal on Wednesday ordered BHP Billiton and Rio Tinto, the second- and third-largest iron ore exporters, to share their multibillion-dollar infrastructure in the Pilbara to others.
Supporting a May 2006 government decision, the country's competition tribunal asked BHP to permit access to its Goldsworthy railway until 2028, and Rio to share its Robe River line until November 2018.
Bowing to this ruling, BHP last night called for smaller miners to begin negotiating access to its Goldsworthy rail line.
However, the access breakthrough for the smaller players is limited, with BHP and Rio winning the right to shut out other miners, including Fortescue Metals, from their two main railroads to Port Hedland - Mount Newman and Hamersley.
Fortescue said last night it appreciated the opening up of the Goldsworthy and Robe rail lines and considered making an appeal to the decision that keeps BHP's Mount Newman and Rio's Hamersley railways restricted.
Last night, the Competition Tribunal disclosed that the expenses in letting smaller mining companies to use the Mount Newman and Hamersley lines ''were so great that access would be contrary to the public interest''.
On the other hand, because the Goldsworthy and Robe River lines handled less iron ore than the other railways, there would not be as much disturbance to their operations if these were opened to smaller miners.
The Gillard government, which is in negotiations with the mining sector over the troublesome RSPT, is set to claim the open-access ruling as a stimulus for employment, investment and exportation.