Tuesday, June 10, 2008

Smaller Iron Ore Miners To Benefit Under WA Haulage Plans

West Australia's $16 billion iron ore industry could be in for a shake-up, with a Government committee outlining a controversial new regime which obliges BHP-Billiton and Rio Tinto to haul smaller miner's iron ore to port.

After taking two years to draft the ABC understands the long awaited Rail Haulage Regime will be released today for public comment.

The plan outlines a set of principles which oblige BHP and Rio to honour the original intent of their State Agreements by hauling other miners iron ore using their monopoly-run rail systems.

It is understood the regime says the junior miner must pay for all additional infrastructure including extra rail cars and tracks. They must also pay a haulage fee so BHP-Billiton and Rio can get a capital return on their service. The Economic Regulator will monitor these fees to ensure there is no gold plating of costs.

If approved by Cabinet the regime will knock down the barriers to entering the iron ore game for other miners.

Source: Australian Broadcasting Commission

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