bhp-rio merger talks & rail -at the pointy end

http://www.theaustralian.com.au/business/wa-resumes-pilbara-talks-with-bhp-and-rio/story-e6frg8zx-1225848232872

Below are the key extracts from the article - will BHP & Rio acquiesce on rail? If they do, BRM will go higher..with an extreme bias!

"....Mr Barnett also indicated for the first time yesterday that he might attempt to force the companies to hand over about 10 per cent of their rail capacity in the Pilbara to transport the ore of smaller miners.

The sensitive issue of haulage rights could prove a sticking point for the mining giants, who have long fought third parties seeking to transport ore on their rail lines.

If the joint venture is to proceed at an operational level, BHP and Rio need approval from the West Australian government to amend a series of state agreements that have allowed the two companies to mine iron ore in the Pilbara for decades.".......



"....Mr Barnett said he would raise the issue of access to BHP's and Rio's rail lines in the Pilbara.

"From their point of view, they built the railways, they operate them, they are not too keen on someone else using them but I think you will see some relaxation," he said. "I don't believe that should be totally open access but as a guide maybe 10 per cent of the capacity should be available for hauling the ore of junior miners.

"Otherwise some of those smaller mines will never be developed. They will not justify their own purpose-built railways.""