North West Iron Ore Alliance urges action on rail access
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The North West Iron Ore Alliance (NWIOA) believes the proposal by BHP Billiton and Rio Tinto to merge their iron ore operations in Western Australia should result in additional capacity on railway lines for third parties. |
Image courtesy of Federal Iron Group
“It is therefore crucial that a new rail haulage regime that is transparent, efficient and cost-effective be brought into existence for smaller iron ore producers,” the NWIOA’s deputy chairman Dr Justin Walawski said.
“The Pilbara Rail Access Interdepartmental Committee (PRAIC) has been considering this matter since 2006 and I’m sure the new State Government will seek the Committee’s recommendations ASAP.
“The Rio–BHP joint venture also means it is vital the NWIOA develops its Port Hedland inner harbour berths as soon as possible.
“With the right environment through the agreement and approvals stages, the NWIOA’s two berths will be commissioned and exporting iron ore in 2013.
“This is crucial infrastructure for diversification of the industry and fostering this State’s next generation of WA iron ore miners.”
The NWIOA also said the Rio-BHP joint venture makes it more important than ever that the State’s emerging iron ore miners are encouraged.
“There appears to be a strong view among analysts that the BHP-Rio joint venture could lead to significant job losses in WA,” Dr Walawski said.
“This is supported by forecasts that the joint venture could generate savings for the pair of about $12 billion.
“If so, it highlights the importance of diversifying the industry, creating new employment and development opportunities and reducing dependence on a small number of large resource companies.
“The NWIOA alone could, once fully operational, provide direct employment opportunities for 600-800 people and two to three times that number again in indirect employment”.
The four members of the NWIOA – Atlas Iron Ltd, BC Iron Ltd, Brockman Resources Ltd and FerrAus Ltd – also have the potential to produce more than 50 million tonnes of iron ore a year by 2013. This would generate about $200 million a year in much-needed royalties for the State and underpin provision for more hospital beds, classrooms and police officers Walawski said.
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