atlas rail, go go go !!!, page-22

"But the Government's position has been that South West Creek would be set aside for the Pilbara's emerging miners and it would not countenance any deal that permanently handed over space to the region's major exporters."

Perhaps there are ways for the WA Govt to do its backflip on this policy? And seriously, how iron-clad is their position anyway if various Aus Govts have already back flipped over far more serious issues like uranium mining, carbon tax, sale of significant public assets, Murray-Darling water rights, Internet censorship and national debt ceiling? I'm of the view that the WA Govt has already caved in because:

1. The WA Govt finally realises that emerging miners do not have the immediate financial capacity or backing to build from scratch new rails and ports. They might eventually build both, but how long will be the delay before that happens?
2. The WA Treasury crunches the numbers and informs the Premier that it is uneconomic for the State to continue with a policy of promoting emerging miners' access at the exorbitant cost of lost royalty revenue to the State.
3. The IO price might fall back to less than $100/t by the time the emerging miners get their rail and port acts together. This would mean a further loss in royalty revenue for the WA Govt.
4. BHP has shelved its plans to build its $20B of additional port capacity. But that's not to say that BHP does not need more port capacity. It might even be AGO's for-now secret rail partner. If so, then BHP might be wielding the confidential Harriet Point Agreement to persuade the WA Govt to change its policy.
5. The WA Govt policy is about preventing a PERMANENT handing over of port capacity into the control of the majors. What if the deal made with AGO is time-limited for, say, 20 years? No ruling has been breached then.
6. The development of the NWIOA port will create substantial jobs for the State. And the sooner, the better. So, why would the Premier be against such a massive benefit?

I still think that an AGO-FMG deal is like a marriage made in heaven; and one that I'd like to see eventuate. But I can also accept that not all marriages are so destined. Many are more a matter of convenience. And that's fine too if stakeholders stand to benefit financially.