Guys I just read this...

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  1. 1,569 Posts.
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    Guys I just read this article:

    http://www.businessspectator.com.au/article/2013/7/3/resources-and-energy/pilbara-stars-align-brockman-and-aurizon

    In the article it mentions a few options for Brockman, the cheapest option being rail access through FMG's subsidiary company TPI. Unfortunately litigation between FMG and Brockman for third party rail access will occur it seems if Brockman chooses that option.

    The article also mentions the simple haulage deal BCI has with FMG.

    IMO, FMG obviously won't enjoy giving over rail access to a third party via litigation. It would much prefer to work in unison with it's third party. If I was to therefore follow that logic through, I believe FMG would be looking at filling TPI capacity in an allotted time if legal matters don't go FMG's way. There's probably other ways FMG could halt Brockman's attempts at access, but filling capacity to me seems the most obvious, since I believe not even the WA government can force FMG to hand over access if the lines are full.

    And now that FMG seems to have gotten on top of it's debt, for now anyway, FMG doesn't need to sell-off TPI immediately. FMG not having to sell TPI urgently may also mean FMG can be bold enough to draft some clauses into any sale contract to suit itself ... perhaps.

    Further JVs between BCI and FMG involving iron ore seem to be next step for BCI beyond Nullagine IMO. It would suit both parties involved.
 
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