Shipping milestone for BC Iron

On a day its chief executive was making headlines battling politicians over the minerals resources tax in Canberra, BC Iron achieved a milestone of its own.

The newest kid on the iron ore block sent a ship carrying 170,000 tonnes of ore to China from Fortescue Metal Group's (FMG) Herb Elliott Port in Port Hedland, Western Australia this week.

The ore comes from its 50-50 joint venture with FMG's Nullagine project in WA.

The full shipment entrenches BC Iron as one of Australia's leading junior iron ore miners in a sector dominated by the big three of BHP Billiton, Rio Tinto and Fortescue.

FMG started shipping iron ore in February but had shared shipments with Fortescue until this week.

Nullagine project is on track to mine three million tonnes for calendar 2011 and ship 3.5 million tonnes for the financial year 2012, the company says.

BC Iron shares lifted four cents, or 1.74 per cent, to $2.34 on a day the overall market fell.

The miner has succeeded as a producer because Fortescue has allowed BC Iron access to its 300km train line - 55km south of Nullagine - and its port facilities.

BHP Billiton and Rio Tinto had said for years that it was impossible to transport ore for other miners, creating tension with Fortescue and the junior iron ore miners .

That hostility continued on Thursday when Mr Young said his company would make history next year when it became the highest effective taxpayer of the minerals resource rent tax (MRRT).

"BHP and Rio Tinto will be paying a lower effective tax rate than us," he told reporters.

"We want to pay the same effective tax rate as everyone else."

Parliament has begun debating legislation for the 30 per cent MRRT which the government wants to operate from July 1 next year.