As you say, a rail deal would do little except reduce the amount they are losing by producing ore by reducing transport by a few cents / tonne / kilometre.
Also FMG's intent always was stated as selling off TPI (The Pilbara Infrastructure) to recoup capital expenditure and allow "a true open-for-all infrastructure solution for landlocked iron ore mines". Its how they bullheaded all their approvals through the WA Carpenter Government in the mid-2000. Well we all know Twigg totally renaged on that deal.
The solution to AGO's problem lies in (1) small ore bodies that are variable and thin; (2) low grades; (3) new mines are becoming increasingly distant from port.
Sacking geos and engineers will not help fix the problem since the solutions need to come from the minesites, not from over-paid General Management with shiny backsides to their trousers and bad coffee breath. Those guys have a totally different agenda - sometimes it seems simply limited to getting a 3 or 6 month contract severence pay-out.
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