MARKET TALK: Rail Access Ruling A Negative For BHP, Rio - ML

1st Jul 2010 02:01

0101 GMT [Dow Jones] The Australian Competition Tribunal's ruling on rail access is a negative for BHP Billiton (BHP.AU)and to a lesser degree Rio Tinto (RIO.AU), Merrill Lynch says. "If ultimately allowed, BHP and Rio would have to 'make room' on the respective iron ore systems for 'new entrants' and barriers to entry (in this case, infrastructure) would be lowered for the iron ore industry in general," ML says. The ACT excluded BHP and Rio's main trunk iron ore rail lines in the Pilbara region of Western Australia but declared secondary lines open to third party access. Says in the case of BHP's Goldsworthy line there are at least two or three junior miners that may legitimately seek access. Notes that Rio's Robe River line has only been declared open to access until 2018 and that potential third party users of the line are less advanced. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 30, 2010 21:01 ET (01:01 GMT)