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BIL
BIBLT
BIL - BHP Billiton - Federal Court Decision Threatens Australian Exports
BHP Billiton
Share code: BIL
ISIN: GB0000566504
NEWS RELEASE
18 December 2006
FEDERAL COURT DECISION THREATENS AUSTRALIAN EXPORTS
Today`s ruling by the Federal Court that BHP Billiton`s Mt Newman and
Goldsworthy iron ore rail lines are not part of the Company`s production process
will work against the national interest.
Chris Lynch, BHP Billiton Executive Director and Group President Carbon Steel
Materials, said he was extremely disappointed with the decision, which
threatened the further growth of one of Australia`s critical export industries.
"It is important to remember that this decision has much broader implications
beyond BHP Billiton. Open access to dedicated rail infrastructure would
compromise the efficient production of iron ore and cause delays in future
investment decisions, making Australian producers less reliable," he said.
BHP Billiton is reviewing the Federal Court judgment in detail and will consider
its options with regards to an appeal.
"We will use all available legal avenues to protect the investments of our
shareholders and joint venture partners and the integrity of our production
process," Mr Lynch said.
The Federal Court ruling does not automatically enable a third party to run its
trains on BHP Billiton`s Pilbara iron ore rail lines. Separate proceedings
underway in the Australian Competition Tribunal (ACT) will now determine the
broader question of whether the rail lines should be `declared` pursuant to Part
IIIA of the Trade Practices Act.
Fortescue Metals Group initiated the ACT proceedings in June 2006 after the
Federal Treasurer had earlier declined to follow a National Competition Council
recommendation that the Mt Newman rail line be declared. It is expected that a
full hearing of the facts, including expert opinion, will be conducted during
the second half of 2007.
Mr Lynch also said there was a sensible alternative that would provide a
workable approach to infrastructure access, without significantly impacting BHP
Billiton`s iron ore production process.
"We have been actively engaged in discussions with the WA State Government about
developing a revised iron ore haulage regime based on BHP Billiton`s current
obligations under the Rail Transport Agreement. It is our understanding that the
State plans to complete this process by the middle of 2007."
The Mt Newman and Goldsworthy rail lines are located in the Pilbara region of
Western Australia and transport more than 100 million tonnes of iron ore each
year to Port Hedland for blending, processing and shipping.
The Pilbara iron ore operations currently provide annual export income in excess
of A$5.5 billion, directly employ more than 7000 people, and deliver around A$1
billion in royalties and taxes to Australia each year.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom
Samantha Evans, Media Relations Mark Lidiard, Investor & Media
Tel: +61 3 9609 2898 Relations
Mobile: +61 400 693 915 Tel: +44 20 7802 4156
email: Samantha.Evans@bhpbilliton.com Mobile: +44 7769 934 942
email: Mark.Lidiard@bhpbilliton.com
Jane Belcher, Investor Relations Illtud Harri, Media Relations
Tel: +61 3 9609 3952 Tel: +44 20 7802 4195
Mobile: +61 417 031 653 Mobile: +44 7920 237 246
email: Jane.H.Belcher@bhpbilliton.com email: Illtud.Harri@bhpbilliton.com
United States
Tracey Whitehead, Investor & Media
Relations
Tel: US +1 713 599 6100
or UK +44 20 7802 4031
Mobile: +44 7917 648 093
email: Tracey.Whitehead@bhpbilliton.com
Date: 18/12/2006 07:40:03 Produced by the JSE SENS Department. |
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