Global miner Rio Tinto Ltd
(ASX:RIO) says it is pleased with the Australian Competition Tribunal’s decision to allow the miner to keep its main rail line to itself and prevent third party access to the rail network.
The Tribunal threw out an earlier ruling by Federal Treasurer Wayne Swan to allow third party access to Rio’s Hammersley line, saying it would be contrary to public interest.
CEO of iron ore, Sam Walsh says Rio is very pleased that the access application over its major Pilbara railway line has been refused.
Mr Walsh says Rio has always been of the view that its integrated operations would be severely disrupted if we were required to allow third parties to operate trains on its rail system.
Rio says the Tribunal also found that the costs involved in providing access has the very real potential of dwarfing whatever benefits might exist from avoiding duplication of lines.
The tribunal decision supports an earlier one made by Mr Swan who rejected an application lodged by Fortescue Metals Group Ltd (ASX:FMG) to gain access to BHP Billiton Ltd’s (ASX:BHP) main line, Newman rail in WA.
However smaller miners have won the right to access Rio’s Robe River line and negotiate access to BHP’s Goldsworthy line.
Rio Tinto reported profit of $5.4 billion for calendar 2009.
