At least Twiggy acknowledges the negotiations with BRM. He did...

At least Twiggy acknowledges the negotiations with BRM. He did not mention super advanced negotiations though.



http://www.perthnow.com.au/business/iron-ore-junior-breaks-stranglehold-with-historic-deal/story-e6frg2r3-1226011849923

FORTESCUE Metals Group chief Andrew Forrest has issued a fresh challenge to BHP Billiton and Rio Tinto to allow third-party access to their Pilbara infrastructure after hailing a "historic" move by junior miner BC Iron to begin exporting iron ore using his company's railway and port.

Speaking in Port Hedland yesterday, Mr Forrest claimed it was the first time a junior miner had been able to transport its own iron ore using another company's railway line in the Pilbara.

This would finally prove to BHP and Rio that third-party access was possible despite their objections over many years.

"The final stake has been put into that lie," said Mr Forrest as he watched the first ore from the 50:50 Nullagine joint venture between Fortescue and BC Iron being loaded on to a ship.

The 20,000 tonnes of ore were loaded on to the MV Zosco Dalian for export to China in the next few days.

The ore was originally trucked 55km to Fortescue's Christmas Creek mine and then loaded on to Fortescue's railway line, where it was transported 320km to Port Hedland.



BC Iron sends first shipment of iron ore
Mining juniors fight for railway access

Mr Forrest revealed Fortescue was in talks with four other miners, including Brockman Resources, over similar infrastructure agreements.

He said he did not regard the Hope Downs mine, a joint venture between Rio and Gina Rinehart's Hancock Prospecting, an an example of third-party access because the ore was owned by Rio which operated the mine. In contrast, BC Iron retained ownership of the ore from the Nullagine venture after it left the mine.

BC Iron chief executive Mike Young said the Nullagine deposit would have remained stranded without the infrastructure deal with Fortescue.

"This really is an important moment," he said. "It will really change the paradigm in Western Australia. I think a lot of companies will see it can be done."

Mr Young said future third-party deals were critical because Australian miners looking to develop projects were increasingly heading to Africa where access to infrastructure was easier than in the Pilbara. After being rejected by BHP and Rio, Fortescue had to finance and build its own infrastructure in the Pilbara in its quest to become iron ore's "third force".

The loading of the ship yesterday came as Fortescue argued its case against BHP and Rio before the full bench of the Federal Court in an appeal against a ruling to disallow access to the Newman and Dampier rail lines.

Mr Forrest accused BHP and Rio of avoiding their obligations to transport junior miners' ore for the past 40 years. The big miners have argued their lines are too busy to open them up. "Well, ours is a really busy railway line," he said. "It's the heaviest-haul, most advanced, most efficient railway line in the world.

"We don't do it for love. We do it because it's good business and because it's building Australia."