FMG makes grab for BHP prospects

Andrew Forrest’s Fortescue Metals Group has redoubled its attack on BHP Billiton’s Pilbara iron ore business with a FMG-linked company lodging documents that could allow it to wrest control of two BHP iron ore exploration tenements in the Pilbara.

The move follows FMG’s recent application to National Competition Council for BHP Billiton’s Mt Newman rail line to be declared open to third party access and, interestingly, BHPB’s train line runs through the plainted tenements.

WA Business News understands Hope Down’s planned train line for its proposed Pilbara iron ore mining operation also runs through the tenements.

Australian Securities and Investments Commission records show the company that lodged the plaints, FMG Chichester Pty Ltd, has three of the same directors as FMG, including FMG chairman Andrew Forrest, and is registered at the same address as FMG.

The plaints, at this stage, mean BHP Billiton will be forced to defend its tenure over the tenements in a Warden’s Court.  Depending on the outcome and whether any appeal is launched, however, the matter could go to the  Supreme Court.

The plaints are on tenements E45/1074-I and E 45/1073-I near Roy Hill about 100 kilometers north east of Newman.

Department of Industry and Resources records show BHP Billiton Minerals Pty Ltd has controlled the two exploration licences since 1991 and been required to spend about $750,000 on each tenement. However, the records show it has spent less than $50,000 on each and received exemptions on the remaining spend.

Mr Forrest issued a statement saying: “Given our determination to develop the Chichester Ranges as Australia’s newest iron ore supply province, with mining and processing centred initially around Christmas Creek as the hub, it would seem wrong in the future to deny access to such mineral potential to companies prepared to visibly commit to on-the-ground activity now – not at some open ended point in the future”.

It is not the first time one of Mr Forrest’s companies has been involved in plainting. In 2001 Anaconda Nickel admitted a link between some of its own personnel and an unlisted private company, Ajax Nominees, which had lodged more than 100 plaints on Goldfields tenements.

Plainting generally occurs if a company can show the owner of an exploration lease has not spent the annual minimum exploring it.