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- #1
Well till the next appeal anyway
Wonder what the shares will be tomorrow?
BHP Billiton appears to have scored a victory over Western Australian iron ore miner Fortescue Metals Group, which has failed in an attempt to get the international mining giant to share its Pilbara railway line.
Fortescue has been trying to persuade the National Competition Council (NCC) to declare part of the railway in northern WA open to public access.
It wants to construct a rail siding from its Mindy Mindy project, linking it to a 295km segment of BHP Billiton's railway to Port Hedland.
BHP Billiton had argued against giving Fortescue access, explaining that the railway was not a rail network but part of the company's integrated production system.
It said that having total control of the railway meant it could respond better to increasing customer demand for iron ore, mostly from China.
But in a draft recommendation, issued last November, the NCC said it had no problem allowing Fortescue and other companies to use the rail line, believing it would help promote competition.
The NCC made a final recommendation to Treasurer Peter Costello, who took over responsibility for a decision from his parliamentary secretary Christopher Pyne.Mr Costello has until midnight (AEST) today to accept, reject or ignore the NCC recommendation.
However, as of late tonight, Mr Costello had ignored the NCC recommendation, meaning it was effectively rejected and removing Fortescue's ability to negotiate with BHP Billiton to get access to the line.
Labor welcomed the outcome protecting BHP Billiton's infrastructure but was critical of Mr Costello for not taking a formal stand on the issue.
"This is the right outcome, but it came only because Peter Costello was too gutless to make a decision," the opposition's resources spokesman Martin Ferguson and competition spokesman Joel Fitzgibbon said.
A spokeswoman from BHP Billiton was unwilling to comment until the midnight deadline had passed.
Fortescue could not be contacted for comment. It can now lodge an appeal with the Australian Competition Tribunal.
----------------
The midnight deadline has passed with no further action
$7.30 as of 22/5/06
Wonder what the shares will be tomorrow?
BHP Billiton appears to have scored a victory over Western Australian iron ore miner Fortescue Metals Group, which has failed in an attempt to get the international mining giant to share its Pilbara railway line.
Fortescue has been trying to persuade the National Competition Council (NCC) to declare part of the railway in northern WA open to public access.
It wants to construct a rail siding from its Mindy Mindy project, linking it to a 295km segment of BHP Billiton's railway to Port Hedland.
BHP Billiton had argued against giving Fortescue access, explaining that the railway was not a rail network but part of the company's integrated production system.
It said that having total control of the railway meant it could respond better to increasing customer demand for iron ore, mostly from China.
But in a draft recommendation, issued last November, the NCC said it had no problem allowing Fortescue and other companies to use the rail line, believing it would help promote competition.
The NCC made a final recommendation to Treasurer Peter Costello, who took over responsibility for a decision from his parliamentary secretary Christopher Pyne.Mr Costello has until midnight (AEST) today to accept, reject or ignore the NCC recommendation.
However, as of late tonight, Mr Costello had ignored the NCC recommendation, meaning it was effectively rejected and removing Fortescue's ability to negotiate with BHP Billiton to get access to the line.
Labor welcomed the outcome protecting BHP Billiton's infrastructure but was critical of Mr Costello for not taking a formal stand on the issue.
"This is the right outcome, but it came only because Peter Costello was too gutless to make a decision," the opposition's resources spokesman Martin Ferguson and competition spokesman Joel Fitzgibbon said.
A spokeswoman from BHP Billiton was unwilling to comment until the midnight deadline had passed.
Fortescue could not be contacted for comment. It can now lodge an appeal with the Australian Competition Tribunal.
----------------
The midnight deadline has passed with no further action
$7.30 as of 22/5/06