Hi Phillip,I must admit that my first reaction when I read about...

Hi Phillip,

I must admit that my first reaction when I read about the NWIOA considering 'stand alone lines(s)' was to consider the strategic value of this option to both NWIOA members and to Chinese interests. Not only would it give both groups - suppliers and consumers - complete independence from any future BHP manipulation of rail access at critical times while pleading 'capacity issues', but it also would make membership of the NWIOA a highly desireable goal for other emerging juniors. A carefully chosen rail route could prove extremely beneficial for not only BRM's known and prospective resource deposits, but also for those of some other juniors.

The stronger the NWIOA becomes, the more influence it can wield in the international market place and with the West Australian government. As I said earlier, it makes sense to me that Chinese investors would be interested in taking an early and significant long-term position in BRM (and other juniors) if it was in their thinking to provide development assistance in any one of its various forms - including, most importantly, an independent rail solution.

I have no reason to believe this will happen, but the logic of such a solution and its potential Win-Win outcome is obvious. I would dearly love to see this outcome delivered as a better outcome (in terms of unfettered rail access and genuine competition with the majors over the longer term) than access, with caveats, to BHP's infrastructure.

It may take some deep pockets and major assistance to develop, but against the background of Marillana's mine life alone, that's a sound investment. That's before you consider BRM's other tenements and the potential use by other juniors via branch lines developed over time, at their expense or via some other arrangement.

I have no idea if the WA government will object to further rail solutions on the basis of environmental impact, etc, but the potential for additional royalties payments that the solution above would offer, must surely whet their appetite and their interest.

Let's hope that the reference to 'stand alone lines(s)' reflects an option that is being considered seriously by the NWIOA and not one that has been included just for the academic completeness of their desktop study.

Regards,
Bones