BC Iron gains port and rail deal with Fortescue

The deal, a memorandum of understanding for which was signed in 2007, was for an initial 3m tonnes a year (mtpa) of iron ore, rising to 5mtpa once port and rail infrastructure has been expanded.

"While the final details are being worked out, this will overcome the critical barriers to production caused by lack of open access to rail and port facilities," BC Iron managing director Mike Young said.

Fortescue has used lack of open access in its campaign to use BHP Billiton's and Rio Tinto's infrastructure in the Pilbara, bolstering its case by saying that its own infrastructure, once complete, would be available to smaller miners.

Announcement of the deal comes a day after Fortescue settled its second-largest suspended shipping deal in London. See full story.

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