The wrangling over Fortescue Metals Group Ltd's access to BHP Billiton Ltd's Mount Newman railway line continued at the 9th Annual Iron Ore & Steel Forecast Conference yesterday.
The wrangling over Fortescue Metals Group Ltd's access to BHP Billiton Ltd's Mount Newman railway line continued at the 9th Annual Iron Ore & Steel Forecast Conference yesterday.
Fortescue Metals' CEO Andrew Forrest refuted comments made by BHP Billiton's president of WA Iron Ore Graeme Hunt that Fortescue had refused to communicate with BHPBIO over access to their railway.
Mr Forrest referred to a letter from Mr Hunt in October 2005 which said BHPBIO would discuss access terms to its railway with Fortescue "when your plans for Mindy Mindy are sufficiently well advanced to make this practicable. In light of the above, I believe that there would be little point to a meeting at this time."
This follows the National Competition Council releasing draft recommendation in November that the service provided by BHP Billiton Ltd Mount Newman railway should be declared for 20 years.
Below is the full announcement from FMG:
In his address to the major 9th Annual Iron Ore & Steel Forecast Conference yesterday, Andrew Forrest, the Chief Executive Officer of Fortescue Metals Group Ltd (Fortescue) refuted comments made earlier in the day by Graeme Hunt of BHP Billiton Iron Ore (BHPBIO).
Mr Hunt claimed Fortescue had refused to communicate with BHPBIO over access to their railway.
In response to the claim, Mr Forrest released a copy of the letter to Fortescue from Mr Hunt of 12 October 2005. In that letter, Mr Hunt said that BHPBIO would discuss access terms to its railway with Fortescue "when your plans for Mindy Mindy are sufficiently well advanced to make this practicable. In light of the above, I believe that there would be little point to a meeting at this time."
Fortescue believes this is essentially the same argument used by BHPBIO in its dispute with Hancock Prospecting Pty Ltd which was completely discounted by the Full Court of the Supreme Court.
In that case, the Full Court unequivocally accepted the submissions from Hancock Prospecting Pty Ltd that "It makes no commercial sense to require a prospective mine operator to undertake the huge expense of establishing a mining operation without having the slightest idea how much he will have to pay to transport his iron ore to the port."
Fortescue has made every effort to reach agreement with BHPBIO to obtain access to its railway. These efforts have in fact been outlined in Fortescue's Application to the National Competition Council (NCC).
The NCC released its draft recommendation on 4 November 2005 saying that it recommended that the service provided by BHPBIO's railway be Declared. Fortescue expects the NCC's final recommendation to be shortly forwarded to the Minister, the Hon Chris Pearce MP (Parliamentary Secretary to the Treasurer).
As distinct from its Mindy Mindy Joint Venture Project, Fortescue will be building its own port and rail facilities for its separate Christmas Creek and Cloud Break Pilbara Iron Ore Projects.
