On September 23, Australian mining giant BHP Billiton lost the appeal in the country's highest court against a ruling that favors sharing railway networks with rivals, such as fellow miner Fortescue Metals Group Ltd. (Fortescue).
Despite all BHP Billiton's efforts to block rivals from using parts of rail lines in the Pilbara region, Western Australia, the High Court rejected its case, a decision which is seen as "disappointing" for BHP Billiton.
The ruling in question opens the way for the Australian Competition Tribunal to decide that BHP Billiton's railway network is open to third parties.
Commenting on the decision, BHP Billiton President of Iron Ore, Ian Ashby said, "We continue to believe there are better, more efficient solutions available, including rail haulage and other commercial arrangements, such as mine gate sales".
Meanwhile, the decision was welcomed by Fortescue, who in return defined it as a "victory".
As a result of the High Court ruling, the decision on whether the Mt Newman railway should be declared open to third parties now rests solely with the Australian Competition Tribunal. The Tribunal is currently receiving submissions from the parties and is expected to make an announcement in March/April 2009. In the event that the Australian Competition Tribunal rules that the Newman line should be declared open, BHP Billiton will be compelled to negotiate third party access terms with Fortescue.
Commenting on the issue, Fortescue Executive Director Operations Graeme Rowley said, "It has been a long running saga and an unnecessary waste of significant time and money that could have easily been avoided if BHP Billiton had simply agreed to negotiate rail access on commercial terms".