Construction begins on Pilbara third-party rail lines

<p>Fortescue Metals Group (FMG) has finally started building its iron ore rail infrastructure after a drawn out battle over third party access to existing lines in Western Australia’s Pilbara region.</p> <p>The work officially began yesterday (Thursday, February 8) as part of Fortescue’s $2.5bn bid to begin exporting iron ore from its Chichester Ranges mines by March 2008. </p> <p>Fortescue chief executive Andrew Forrest believes the total package will cost $3.5bn.</p> <p>The 260-km rail line will eventually allow Fortescue to connect with its planned open-access port facilities at Anderson Point, in the Port Hedland harbour.</p> <p>New port and rail facilities will also allow other junior miners access under third party agreements.</p> <p>Fortescue plans to export about 45mtpa, leaving up to 15mtpa of rail capacity for other miners to use.</p> <p>BHP Billiton is still fighting to keep Fortescue and other juniors miners from using its rail lines, arguing that its rail infrastructure is integral to the production process.</p> <p>BHP Billiton is appealing a Federal Court ruling in December that gave Fortescue hope that it could use BHP Billiton’s rail lines, rather than build its own.</p> <br />