Like you I am not up to speed on FRS's rail options, so I won't comment.
I have always maintained that while access to Newman presented BRM with the best least cost option, I think strategically and FMG/potential Hancock tie up is a superior long term outcome. With FMG taking BRM's tonnages, the adds to its overall share of Pilbara exported I/O volume, and adds significant grunt to a collective emergent "third force". This has to be attractive to FMGs and BRMs current and future Chinese customers.
Although I was not privy to the behind the scenes machinations of the Juniors' response to the RSPT, BRM and other NWIOA members gave a good, responsible public account of their position. No doubt the results of this are ongoing.
However playing close bat to FMG issues and concerns was welcome to see (even though there may be differences on the preferred taxing point on a mine-by-mine basis). I was heartened to see the collective press conference with FMG, BCI and the NWIOA members. If tighter bonds were formed via this process, then that is a positive outcome for all involved. It is much better for BRM to negotiate rail in a spirit of respect and cooperation.
BRM Price at posting:
$3.07 Sentiment: LT Buy Disclosure: Held
