BHP Billiton loses Pilbara rail appeal in High Court

THE High Court of Australia has unanimously dismissed an appeal by BHP Billiton over the Pilbara rail access dispute. The court rejected BHP’s (ASX: BHP) appeal against a ruling by the National Competition Council that use of the rail lines at its iron ore operations in Western Australia by Fortescue Metals Group (ASX: FMG) would be an interruption to BHP's production process. "The use by Fortescue of a railway line that was integral to BHP Billiton Iron Ore's production process would not amount to the use by Fortescue of that production process," the High Court said in a summary of its judgment. BHP has long argued its Pilbara rail lines are part of its production process, which under the law would prevent them being declared open to other parties. The High Court decision doesn't clear the way for Fortescue and other miners to run trains on BHP's railways but does scuttle one of BHP's key arguments against the lines being declared open to third party access. Fortescue is seeking to have the Pilbara rail lines of both BHP and Rio Tinto (ASX: RIO) declared open and Treasurer Wayne Swan is due to announce a decision on access to Rio's Hamersley and Robe River rail lines and BHP's Goldsworthy line next month. A Fortescue spokesman welcomed the High Court decision and said the miner was pleased it was unanimous. "Neither BHP nor Rio are now in a position to argue that their railway lines shouldn't be declared because they are used for a production process," he said. BHP declined to comment on the High Court ruling, while Rio Tinto wasn't immediately available to comment. Dow Jones Newswires