Third party gets access to rail

Fortescue Metals Group (FMG) has welcomed the draft recommendations by the National Competition Council (NCC) to declare the rail services of Rio Tinto and BHP Billiton for the Robe, Hamersley and Goldsworthy railway lines open to third parties.

Fortescue Metals Group (FMG) has welcomed the draft recommendations by the National Competition Council (NCC) to declare the rail services of Rio Tinto and BHP Billiton for the Robe, Hamersley and Goldsworthy railway lines open to third parties.

FMG Executive Director Graeme Rowley said the railroads of the Pilbara have not just been used to develop an iron ore business for a favoured few but as a prohibition on the further development of the Pilbara by others.

“The decision by the NCC recognises the opportunity available now for all mining companies operating in the Pilbara to capture the enormous export demand from China and other Asian markets for all minerals including iron ore,” he said.

“Australia stands to lose enormous opportunity if mining companies in the Pilbara are denied the opportunity to access existing and available infrastructure to export their product.

“The enormous capital requirement to build rail lines and ports, which has a resultant impact on national expenditure causing increased inflationary pressure, is beyond the financial means of most mining companies.

“We see no reason why third parties should not be allowed to commercially negotiate with rail operators to access those rail lines if that access has no impact on the efficient operation of the operator.”

Fortescue Metals Group Ltd

08 6218 8888

www.fmgl.com.au

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