Tribunal Protects Rio Tinto's Railway Line in the Pilbara

Rio Tinto has welcomed the decision to keep its railway line in Western Australia closed to smaller iron ore miners. The Australian Competition Tribunal backed Treasurer Wayne Swan's decision to reject Fortescue Metals Group's application to open the rail line in Western Australia's Pilbara region to other users.

Iron ore train, Pilbara. Image Credit: © 2010 Rio Tinto - All rights reserved.

Fortescue Metals group wanted to use BHP Billiton's Mt Newman rail line. However the tribunal only said that BHP Billiton and Rio Tinto had to open their two smaller and lesser used railway lines to negotiations with third party haulers.

This would benefit smaller iron ore companies such as Atlas Iron and Aquila Resources. David Flanagan of Atlas expressed great happiness over the new possible negotiations with BHP Billiton over the rail line use.

Rio Tinto chief executive Sam Walsh said that he was pleased that the access application over the major Pilbara railway line had been refused. Mr. Walsh felt that the integrated operations of Rio Tinto would be severely disrupted if they were to allow third parties to operate trains on their railway system.

Joel Scanlon

Written by

Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.

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