A 60 day review period by the fed govt, wayne swan for a decison...

A 60 day review period by the fed govt, wayne swan for a decison on the recommendation by the ncc on opening up access to other parties such as Gondwana and their wallal downs iron-ore target in the north east pilbara ( north of BHP and RIO, and not far from Goldworthy). Wallal Downs is a 25km long strike target adjacent to the coastal highway and not far to truck the product to the rail if the feds decide to open the rail up. Gondwana is expected to be on the ground exploring their Wallal Downs tenement late this year/early next year and still several years before a potential mining operation but from a long term perspective, the ncc recommendation, which will probably be ferociously opposed by both rio and bhp, are looking better by the week.

From the latest industry news.net
http://www.supplychainlogisticsnews.net/storyview.asp?storyid=265302§ionsource=s0

NCC recommends third-party Pilbara rail access


Monday, 23 June 2008

THE National Competition Council has called for BHP Billiton’s Goldsworthy railway line and Rio Tinto’s Hamersley and Robe railway lines to be opened to third parties, a move welcomed by Fortescue Metals Group, but slammed by Rio.



Loaded up and ready to roll from BHP Billiton's Yandi iron ore mine.

Rio has opposed the draft recommendation, saying it would put at risk billions of dollars in future investment and rapidly erode national wealth.

News of the draft recommendation represents a win for FMG over its arch-rivals BHP and Rio after the iron ore play applied to the NCC to have the Robe River, Hamersley and Goldsworthy railway networks opened to third parties.

However, Rio said in a statement Friday that such a system would see the development in the Pilbara suffer the same infrastructure issues and inefficiencies that have plagued the east coast coal ports.

“The NCC appears to be lining Australia up for a massive exercise in value destruction,” Rio iron ore chief Sam Walsh said.

Walsh said an Access Economics report estimated that a multi-user system could cost up to $30 billion over 20 years.

“Rio Tinto has spent or is committed to spend $US8.6 billion since 2003 upgrading its infrastructure and expanding its integrated mine to port network to ensure the maximum efficiency,” Walsh said.

“Not only would the inefficiencies of a multi-user system impede Rio Tinto’s ability to expand, but the likelihood that new capacity would be available to others would discourage further investment.”

FMG executive director Graeme Rowley said all mining companies operating in the Pilbara should have the opportunity to benefit from the enormous export demand from China and other Asian countries for all minerals.

“It has now become abundantly clear that the railroads of the Pilbara have not just been used to develop an iron ore business for a favoured few, but as a prohibition on the further development of the Pilbara by anyone else,” Rowley said in a statement.

“We see no reason why third parties should not be allowed to commercially negotiate with rail operators to access those rail lines if that access has no impact on the efficient operation of the operator.”

The draft recommendation was also welcomed by the North West Iron Ore Alliance, a group made up of Atlas Iron, BC Iron, Brockman Resources and FerrAus, and the Association of Mining and Exploration Companies.

Both industry associations said third-party access is essential for the long-term viability and sustainability of Western Australia’s iron ore industry and will help junior companies progress their projects through to production stage.

Friday’s draft recommendation will now be subject to a public submissions period, after which the NCC will make its final recommendations to the Treasurer Wayne Swan.

Swan then has 60 days to decide whether or not the NCC recommendation will be implemented.