BHP chairman ploughs on with Rio deal

BHP Billiton chairman Don Argus has signalled his determination to push through the miner's $150 billion offer for Rio Tinto, despite the turmoil on global share markets and signs the commodities bull run is slowing. His comments came as the High Court dismissed BHP's appeal in its long-running legal dispute with Fortescue Metals Group over third-party access to rail networks in Western Australia's Pilbara. In a bullish interview lodged with the Australian Securities Exchange yesterday, Mr Argus reportedly said BHP's intentions were "always to engage" Rio shareholders. "At the end of the day, the shareholders are the decision-makers - boards are only stewards of someone else's money," BusinessSpectator reported Mr Argus as saying in comments later cut from the public transcript for legal reasons. "If there's $US50 billion sitting there on the table, and a board recommends they don't accept that, then I wouldn't like to be on the board that has to answer to shareholders and say, 'Well, how am I going to replace that $US50 billion and when?' "Meanwhile, the High Court unanimously ruled Fortescue's proposed use of BHP's Mount Newman line constituted a service under the Trade Practices Act. The judgment paves the way for all of BHP Billiton and Rio Tinto's rail networks in the Pilbara to be declared open to Fortescue and other smaller iron ore miners. And it means the final decision on the Mount Newman line now rests with the Australian Competition Tribunal, which is expected to hear the matter in March or April next year. Separately, Treasurer Wayne Swan is expected to rule on access Rio's Hamersley and Robe River lines and BHP's Goldsworthy lines by the end of October. Although its final recommendation has not been made public, the National Competition Council's draft recommendation to Mr Swan backed Fortescue's claims. In other developments, BHP chief executive Marius Kloppers said in the interview lodged with the ASX that BHP would re-think its 3.4-for-one all-share offer for Rio if the European competition regulators approved the deal only on condition of big asset sales. Mr Kloppers also said that BHP would sell uranium to China "for decades" as the economic giant ramps up its reliance on nuclear power. Fortescue shares closed 5c lower to $6.46 yesterday. BHP and Rio shares fell 3c to $37.87 and $2.74 to $105.30 respectively.