what's brm worth with rail access??, page-5

From Reuters - got to wonder whether BHP is offering something similar to BRM as a means of avoiding rail obligations.

SYDNEY, Nov 24 (Reuters) - Rio Tinto Ltd/Plc (RIO.AX)(RIO.L) has agreed to buy and transport up to 1.5 million tonnes of iron ore annually from small Australian miner Iron Ore Holdings Ltd (IOH.AX), a move that could enable Rio to avoid sharing its rail haulage lines with third parties.

Rio, the world's second-largest iron ore miner, has also agreed to look at buying one of IOH's undeveloped mines, it said in a statement on Tuesday.

Rio and BHP Billiton Ltd/Plc (BHP.AX) (BLT.L), which are awaiting regulatory approvals to merge their iron ore operations, have suggested that buying other miners' output in "mine gate sales" could be an alternative to opening up their railways to third parties wanting to ship ore to ocean ports.

Courts in Australia in 2008 ruled the two must open their lines to third parties when they have the spare capacity. Both companies argue that sharing lines would lead to shipping delays and higher costs and are appealing the rulings.

Rio and IOH had signed a memorandum of understanding in July 2008 for Rio to acquire the iron ore produced at IOH's Phil's Creek mine starting in 2010. It is located 5 kms from Rio's Yandicoogina mine in west Australia's Pilbara region.

Rio also said it had agreed to examine IOH's neighbouring Iron Valley deposit, which could lead to the purchase of part or all of the lease covering the deposit.

A purchase would mirror a recent move by BHP to acquire a junior miner with ground near its own operations in the Pilbara, the world's single-biggest iron-ore deposit, as both firms look to meet expected growing demand, particularly from China.

Rio expects to mine more than 200 million tonnes of iron ore this year.