Plans by BHP Billiton Ltd and Rio Tinto Ltd to set up an iron ore joint venture in Western Australia should force open up their infrastructure to third party access, Fortescue Metals Group Ltd says.
"The joint venture supports Fortescue's contention that third party access can be accommodated," Fortescue executive director Graeme Rowley said in a statement.
"BHP Billiton and Rio Tinto's arguments to government and the courts that their rail lines were running at full capacity and that they couldn't accommodate another miners' trains... can now be seen as fallacious.
"This proposed joint venture represents an opportunity for government to renegotiate better access agreements through the new state agreements which will now be negotiated."
Rowley says third party infrastructure access is critical to ensure the development of new mines in the Pilbara region of WA.
"It is now more important than ever that State and Federal Governments do what they can to assist smaller miners with the development of their operations.
"Fortescue will now become the only alternative, large volume Australian iron ore supplier."
BC Iron managing director Mike Young supports Rowley's view, telling reporters that the proposed tie-up was certain to free up rail infrastructure in the Pilbara, giving iron ore juniors a path to export.