imagine vale goes for ago (business spectator)

Barnett says Vale push into WA welcome

Published 7:28 PM, 23 Feb 2012
Last update 2:40 AM, 24 Feb 2012
AAP

West Australian Premier Colin Barnett says he has no concerns about the possibility of Brazilian iron ore giant Vale buying into the state.

Media reports suggest Vale - the world's biggest iron ore producer ahead of Rio Tinto and BHP Billiton - is eyeing WA's Yilgarn region because it there is a cost disadvantage of shipping to China from Brazil.

Mr Barnett said he had no problem with Vale becoming involved in the Yilgarn region, a large area centred on the town of Southern Cross and best known for gold and nickel mining.

"But I'd be concerned if they would try to take over either Rio or BHP's operations," he told reporters on Thursday.

"As a big producer, a big corporation providing capital and development of new projects, they're as welcome as anyone else."

Mr Barnett said he was satisfied with the structure of the state's lucrative iron ore industry after previously being concerned about the now-abandoned BHP Billiton-Rio Tinto production tie-up as it would have resulted in a monopoly producer.

He said WA's iron ore sector was now more diverse, with mid-tier and large miners like Atlas Iron and Fortescue Metals Group.