| The TEX Report Topics < Iron Ore > | |
| HOME >> Topics List >> September, 2008 >> 25 (Thu) |
| High Court Upholds Third-Party Access To Existing Railways |
| = BHP Billiton expresses disappointment = |
|
BHP Billiton has expressed its disappointment by the September 24 High Court decision on the definition of 'production process' in relation to third party access to BHP Billiton's rail lines in the Pilbara, Western Australia. The number of legal issues over the third party access to the existing railways in the Pilbara has been increasing and judicial bodies including arbitration courts are recommending declaration of existing railways open to third party access. BHP Billiton that has Mt Newman and Goldsworthy rail lines commented; "We believe our West Australian integrated mine, rail and port operations are amongst the most efficient in the world. In the current fiscal year alone, these operations are expected to deliver 137 million tonnes of iron ore (100% BHPB terms; Its attributable share in Western Australian Iron Ore is approximately 85%) to customers all over the world and are running at full capacity," and furthered; "We continue to believe there are better, more efficient solutions available, including rail haulage and other commercial arrangements, such as mine gate sales." Fortescue Metals Group (FMG), among other new miners seeking open access, welcomed the High Court ruling by saying; "This is a great victory for Fortescue, but it has been a long running saga and an unnecessary waste of significant time and money that could have easily been avoided if BHP Billiton Iron Ore had simply agreed to negotiate rail access on commercial terms. Arguments that this is a disincentive to rail investment and, as a result, no-one will do it are rubbish. Fortescue has done it. We have built a railway under conditions of open access and negotiated access can provide both parties with a superior outcome compared to a regulated regime and that has always been our goal." As a result of the High Court ruling, the decision on whether the Mt Newman railway should be declared now rests solely with the Australian Competition Tribunal. The Tribunal is currently receiving submissions from the parties and is expected to hear the matter around March / April next year. |
| last modified : Tue 30 Sep, 2008 [11:10] |
