Rail line supported, page-37

This was sent to me by a “concerned FMS shareholder”.

Railway (BBI Rail Aus Pty Ltd) Agreement

Bill 2017

SECOND READING SPEECH

The purpose of the Bill is to:

 Ratify and authorise the implementation of an Agreement (scheduled to the Bill) between the State and BBI Rail Aus Pty Ltd and Todd Petroleum Mining Company Limited, Todd Offshore Limited and Todd Minerals Limited relating to the development of a railway in the Pilbara region of the State; and.......


The Agreement will allow the Balla Balla Infrastructure project to develop the heavy haulage railway that will link a number of iron ore deposits, known as the Pilbara Iron Ore Project (the PIOP) to a transhipment port to be constructed at Balla Balla. This integrated iron ore project will be significant in both scale and economic investment. The project also provides the opportunity to open up stranded iron ore assets in the region.


The BBI railway will consist of 160 kilometres of standard gauge heavy haulage railway connecting Balla Balla Port with the Railhead Stockyard and into the central Pilbara region. The ore to be carried by the rail will be underpinned by the project having secured binding agreements with the proponent or proponents of the PIOP.


The agreement for the carriage of ore will be for not less than 20 years and not less than 25 million tonnes per annum from the PIOP and must be in place at the time the BBI Group submit proposals to the Minister for approval.


Subsequent to the initial proposals being approved, and with the Minister’s approval, the proponents may seek to expand the project through the construction of additional rail spur lines for the carriage of additional tonnages of ore."


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So - there is nothing "maybe" about that is there?

the above is the basis of a formal Bill to be approved by the WA Govt.

This is serious stuff.


FMS says:

24 March 2017

BBI Group signs a Memorandum of Understanding with China State Construction

Engineering Corporation Limited


The Directors of Flinders wish to make it clear that the Company does not have any existing

commercial agreements in place with BBIG. Flinders has a strategic review underway which will

examine infrastructure solutions to bring the PIOP project iron ore resource to market.



So that may well be true.

But what about an "understanding" that a "commercial agreement" will be put in place?


Because WHY would Todd/BBIG state categorically before WA Parliament, that BBIG WILL secure iron ore from PIOP?

WHY would Todd agree to lend, unsecured, a further $5m to FMS?


Whilst they may play ducks and drakes with the individual entities to try and provide technical excuses for avoiding full disclosure, the reality is that Todd Group (incl TIO NZ Ltd which actually owns the shares in FMS) is clearly Associated with the Todd entities which have put the proposed Bill to the WA Govt along with BBIG.


Two of The directors on the FMS board are stated as nominees of the Todd group.


So how can the FMS Board sit back and say nothing, when its biggest shareholder, with two of its directors on the FMS Board, are telling the WA Govt that they WILL get control of the iron ore belonging to FMS?

How do the directors sit around the table and not discuss this matter?


There is no point in FMS spending tens millions $ doing this Maturation work, if there is no avenue to market and customers?

So just WHAT is the basis behind the decision to commit FMS to spend those funds it has raised from shareholders then, if there is no agreement to sell the stuff to BBIG - agreement express or implied.