18th Dec 2006 07:00
BHP Billiton PLC18 December 2006 18 December 2006Number 34/06 FEDERAL COURT DECISION THREATENS AUSTRALIAN EXPORTS Today's ruling by the Federal Court that BHP Billiton's Mt Newman andGoldsworthy iron ore rail lines are not part of the Company's production processwill work against the national interest. Chris Lynch, BHP Billiton Executive Director and Group President Carbon SteelMaterials, said he was extremely disappointed with the decision, whichthreatened the further growth of one of Australia's critical export industries. "It is important to remember that this decision has much broader implicationsbeyond BHP Billiton. Open access to dedicated rail infrastructure wouldcompromise the efficient production of iron ore and cause delays in futureinvestment decisions, making Australian producers less reliable," he said. BHP Billiton is reviewing the Federal Court judgment in detail and will considerits options with regards to an appeal. "We will use all available legal avenues to protect the investments of ourshareholders and joint venture partners and the integrity of our productionprocess," Mr Lynch said. The Federal Court ruling does not automatically enable a third party to run itstrains on BHP Billiton's Pilbara iron ore rail lines. Separate proceedingsunderway in the Australian Competition Tribunal (ACT) will now determine thebroader question of whether the rail lines should be 'declared' pursuant to PartIIIA of the Trade Practices Act. Fortescue Metals Group initiated the ACT proceedings in June 2006 after theFederal Treasurer had earlier declined to follow a National Competition Councilrecommendation that the Mt Newman rail line be declared. It is expected that afull hearing of the facts, including expert opinion, will be conducted duringthe second half of 2007. Mr Lynch also said there was a sensible alternative that would provide aworkable approach to infrastructure access, without significantly impacting BHPBilliton's iron ore production process. "We have been actively engaged in discussions with the WA State Government aboutdeveloping a revised iron ore haulage regime based on BHP Billiton's currentobligations under the Rail Transport Agreement. It is our understanding that theState plans to complete this process by the middle of 2007." The Mt Newman and Goldsworthy rail lines are located in the Pilbara region ofWestern Australia and transport more than 100 million tonnes of iron ore eachyear to Port Hedland for blending, processing and shipping. The Pilbara iron ore operations currently provide annual export income in excessof A$5.5 billion, directly employ more than 7000 people, and deliver around A$1billion 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 KingdomSamantha Evans, Media Relations Mark Lidiard, Investor & Media RelationsTel: +61 3 9609 2898 Mobile: +61 400 693 915 Tel: +44 20 7802 4156 Mobile: +44 7769 934 942email: [email protected] email: [email protected] Belcher, Investor Relations Illtud Harri, Media RelationsTel: +61 3 9609 3952 Mobile: +61 417 031 653 Tel: +44 20 7802 4195 Mobile: +44 7920 237 246email: [email protected] email: [email protected] United StatesTracey Whitehead, Investor & Media RelationsTel: US +1 713 599 6100 or UK +44 20 7802 4031Mobile: +44 7917 648 093email: [email protected] BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc Registration number 3196209Registered in Australia Registered in England and WalesRegistered Office: Level 27, 180 Lonsdale Street Melbourne Registered Office: Neathouse Place London SW1V 1BH UnitedVictoria 3000 KingdomTelephone +61 1300 554 757 Facsimile +61 3 9609 3015 Telephone +44 20 7802 4000 Facsimile +44 20 7802 4111 The BHP Billiton Group is headquartered in Australia This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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