BHP Billiton Responds to Australian Competition Tribunal Rail Access Applications Decision

BHP Billiton welcomed the Australian Competition Tribunal’s decision to reject the application for declaration of its Newman rail line while expressing its disappointment at the Tribunal’s decision to grant declaration of BHP Billiton’s Goldsworthy rail line under Part IIIA of the Trade Practices Act.

The company’s rail infrastructure in Western Australia is fundamental to its integrated mine, rail and port production process for its world class Iron Ore operations. Ian Ashby, President of Iron Ore, said: “While we welcome the Tribunal’s decision to reject the application for access to our Newman line, we are disappointed by their decision to grant declaration of our Goldsworthy rail line given its importance to our Iron Ore business. It is not in the public interest that our business or customers should be disadvantaged through the increased inefficiencies and costs that will result from other companies operating their trains on our rail lines”.

Following the Tribunal's decision, access seekers may now negotiate with BHP Billiton for access to the Goldsworthy railway. These negotiations, and the availability and terms of access, would be governed by the Part IIIA statutory framework, and either the access seeker or BHP Billiton could refer disputed matters to the ACCC for arbitration. The outcome of this process would govern whether access would be provided and on what terms. BHP Billiton will review the Tribunal’s Goldsworthy decision. The company is entitled to appeal the decision via the Full Bench of the Federal Court of Australia.