Australia's competition watchdog has issued a conditional authorization to a group of junior iron ore producers to collectively bargain with the major Australian iron ore miners for rail transportation and rail track access in the Pilbara region of Western Australia.
Authorization has been sought by North West Iron Ore Alliance which represents iron ore producers Atlas Iron Limited, Brockman Resources Limited and FerrAus Limited.
The Australian Competition and Consumer Commission (ACCC) said in a statement on March 4 that the proposed arrangement allows miners to collectively negotiate on the terms and conditions, including price, stating that collective negotiations are likely to result in some transaction costs savings.
Rio Tinto and BHP Billiton, the two biggest Australian iron ore miners, have refused to share their rail routes, while third largest Australian iron ore producer Fortescue, which owns its own railway route, has been more positive about the request.