Australian regulators want BHP, Rio to open Pilbara rail lines to Fortescue

Mumbai: Australia's National Competition Council has recommended that three key privately-owned Pilbara rail lines be opened to Fortescue Metals Group, potentially Australia's third largest mining company.

The federal advisory body wants the Robe, Hamersley rail lines owned by Rio Tinto and the Goldsworthy rail line, owned by rival BHP Billiton be opened to Andrew Forrest's Fortescue to boost export competition in minerals.

A final decision on granting Fortescue and other companies the right to negotiate access to the railroads will be made by Australian Treasurer Wayne Swan within two months, the council said in its draft recommendation on its website.

A Fortescue subsidiary had made an application for access to the rail lines, as there was no competing rail infrastructure in the Pilbara.

Citing the lack of transport facilities as a major constraint for developing iron ore mines, the company had sought the opening up of the Pilbara railways to haulage services to any iron ore or metals producer who wants to use them.

Rio Tinto sad the NCC recommendation, if accepted, could end up costing up to $30 billion in the next 20 years. It would create ''infrastructure chaos'', it added.