i/o juniors win right to bargain on rail, page-9

NWIOA keeps pressure on BHP, report says

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BHP Billiton Ltd is under pressure to fulfil its rail haulage obligations in Western Australia, after the North West Iron Ore Alliance (NWIOA) made a submission to the Australian Competition and Consumer Commission (ACCC), according to the Australian Financial Review newspaper.

According to the newspaper, BHP's agreement with the WA government stipulates it is obliged to provide rail services to third parties that wish to transport iron ore.

NWIOA, representing junior iron ore miners Atlas Iron Ltd, Brockman Resources Ltd and FerrAus Ltd, has gone to the competition watchdog in order to ensure BHP conforms to the agreement.

"Without an effective rail transportation regime being in place for the Pilbara you're going to reduce the ability or emerging miners to grow production to meet the growing demand in the iron ore market," NWIOA chief executive Tony Considine told the AFR.

The submission comes as BHP is set to meet with the Queensland government over the bid for the soon-to-be-privatised Queensland Rail's coal tracks.

Earlier this month, the ACCC gave conditional approval to the NWIOA Ops Pty Ltd to collectively bargain for rail haulage services and track access in WA's Pilbara region.

The decision means NWIOA can now negotiate on terms and conditions of its use of the infrastructure, including price.

NWIOA hopes to negotiate with BHP, Rio Tinto Ltd, Fortescue Metals Group Ltd and any similar provider in future for use of their rail services.