Australia rules BHPB, Rio Tinto must share ore railways

Mining giants Rio Tinto and BHP Billiton must share prized iron ore haulage railways in Australia with competitors under a government ruling on Monday in the latest turn in a legal battle. At stake are the exclusive rights to hundreds of miles of railway across the west Australian desert used to haul nearly half a billion tonnes of ore dug up each year to ocean ports. The region`s third biggest miner, Fortescue Metals Group Ltd has led a legal fight over access to the railways for several years. Monday`s ruling by Treasurer Wayne Swan, if upheld, could benefit a legion of smaller miners with rights to deposit but no means to get their ore to market, including BC Iron Ltd, Talisman Mining Ltd and United Minerals Corporation NL, analysts said. Rio Tinto said it was likely to seek a review of the decision in hopes of having it rescinded. Analysts said BHPB, which did not immediately comment on the ruling, also was likely to appeal. Swan said three key rail lines must be available for third parties to use for the next 20 years. The ruling was in line with a recommendation by the Australia`s National Competition Council. The ruling applies to the Rio Tinto`s Robe River and Hamersley lines and BHPB`s Goldsworthy railway. "Some parties raised concerns regarding the potential costs arising from third party access," Swan said in a statement. "However, on balance I consider that these are outweighed by a range of benefits, including increased competition, avoiding inefficient duplication of facilities and reducing further adverse impacts on native title rights and the environment." Australia`s High Court in September ruled BHPB had no right to deny access to Fortescue. ---Reuters