movement at the station, page-7

Hi Schueym99,

I don't hold BRM so forgive me if this has already been discussed since I don't regularly read the BRM forum on HC.

I totally agree with you. I reckon a BRM rail-line is what BRM management should be focusing on. In my opinion trucking to FMG's rail-line isn't an option for BRM because FMG is really really struggling with 40Mt a year at the moment not because there's a lack of space on it's rail-line. It's because they don't have the loading facilities to handle anymore than 40Mt at the moment. FMG I'd say would probably like to rail BRM IO on commercial terms as they would like also to rail AGO's IO. But it would be impossible for them to do this at the moment until there's at least a Multi-Billion Dollar cash injection from the Chinese for FMG expansion.

Although don't be surprises if most of the possible Chinese funds go towards Christmas Creek and Solomon for FMG. And VERY little to accomodate third parties demands.

The BCI/FMG story :- As some of you are aware BCI had to give 50% of it's Nullagine mine to FMG for rail/port access. BCI is really "small fry" in comparision with BRM's plans. In the first year of production BCI can only export with their JV partner FMG 3Mt. That's no fault of BCI. BCI's mine design can easily cope with 5Mt so can BCI's private road to haul the DSO to the FMG rail-line. The sticking point is that FMG is so streched at the moment that they can only load 3Mt until they can update the loading facility on the Chistmas Creek rail extention to handle any more than that. BCI and FMG wish to export 5Mt in 2012, but that's only on the proviso that the loading facility can be ramped up to cope with 5Mt. So at the moment FMG is struggling to export a lousey 2Mt of extra NJV IO until 2012.

If my memory serves me right I believe BRM is wishing for someone to carry 17Mt of DSO to the port - Probably to Utah through the NWIOA. Since it looks like BHP isn't an option, BRM's only option is FMG. BUT only if FMG can load 17Mt. I'm afraid FMG just couldn't possibly handle 17Mt at this stage anyway. With FMG "hell bent" to get production to 100Mtpa through Cloud Break, Christmas Creek and eventually Solomon. There number one focus is themselves at the moment, not Third parties.

For me, it's not a matter of BRM contemplating giving half of their mine away to FMG to obtain a rail/port deal just like BCI had to do. The current fact is that FMG just doesn't have a Equipment to load 17Mt's of DSO. And 17Mt is a bloody lot of DSO to load. BCI's small size or the small amount of demand it asked of FMG regarding DSO to be exported, was the ONLY reason that they received a rail/port deal with FMG.

If BRM had it's own line that hooked up with FMG's line than that's a completely different story for BRM. BRM isn't anywhere near as relient on FMG. Loading the IO yourselves and than connecting up with FMG's line makes absolute sense to me. BRM could also carry others IO as well eventually.

The two big problems for BRM will be the extra money to do this. As well as trying to obtain Enviromental Approval to cross the Fortescue Marshes.

I'd also be surprises if BRM didn't receive Chinese backing for such a proposal.

Just my thoughts.

Bye Chelkn.