Atlas, BHP rail access plan fails

Yet another Pilbara iron ore rail access plan has failed.

It comes as Atlas Iron and BHP have walked away from a proposed agreement over access to BHP’s Goldworthy rail lines, The West reports.

Following a joint study into Atlas’ proposal to haul iron ore along the rail line, and then transport it to the Utah Point berth at Port Hedland, Atlas has now announced that the plan will not go ahead.

While Atlas CEO David Flanagan declined to comment on the cause behind the proposal’s derailment, the miner’s recent quarterly report did state that a deal between the two “is not feasible at this stage given cost and timing”.

However, Flanagan did say the miners were carrying out “a range of commercial discussions”, but refused to elaborate.

Many miners have faced the same difficulties in gaining access to BHP, Rio Tinto and Fortescue Metals massive iron ore infrastructure networks in the Pilbara, which have opened up the region.

The ACCC last year stated that the Goldsworthy line, which operates near to Atlas’ Pardoo iron ore mine, should be open to third parties.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.