fmgs rail agreement for junior fe miners

FMG rail sharing agreement gets nod
AAP, The West Australian
January 14, 2010, 2:55 pm

http://au.news.yahoo.com/thewest/a/-/breaking/6679868/fmg-rail-sharing-agreement-gets-nod/

A West Australian Government agency has given the nod to Fortescue Metals Group plans to share its Cloudbreak rail line in WA's Pilbara region.

The Economic Regulation Authority has officially approved a rail access segregation agreement by FMG subsidiary The Pilbara Infrastructure Pty Ltd, submitted last month.

The arrangement would allow other miners in the area to use the 260km long rail line from Cloudbreak iron ore mine to Port Hedland.

It provides shared rail access to other junior miners in the iron rich region and protection for FMG commercial confidentiality.

The agreement is expected to provide reassurance to the Pilbara's growing host of junior miners.

ERA assistant rail director Jeremy Threlfall said the arrangement provided a fair guideline by TPI, FMG's infrastructure arm, for all railway users.

"When TPI lets someone else use their railway line it is very important for fairness sake that the third party ... rail user is not at a disadvantage," Mr Threlfall said.

"The segregation arrangement is just about how the company will keep it all separate, so that third party operators aren't unfairly disadvantaged."

FMG has waged a long legal battle against mining giants BHP Billiton and Rio Tinto in a bid to get them to open up their rail lines to other iron ore players in the region.