Iron ore producer BC Iron said that its USD 190 million deal with Fortescue Metals to boost output to 6 million tonnes will not be affected by any sale of Fortescue's infrastructure assets.
Fortescue Metals Group said that it was in negotiations with potential investors in Fortescue subsidiary The Pilbara Infrastructure,which owns the miner's rail and port assets.
Mr Mike Young CEO of BC Iron said that the talks could be a precursor to more third party access to infrastructure assets in the iron ore rich Pilbara region of Western Australia,but investors would have to wait and see.
Mr Young said that"The FMG deal won't affect us because we've got contracts with FMG."
He said that last week's USD 190 million deal with JV partner Fortescue was watertight.
Under the deal,BC Iron will take an additional 25%stake in the Nullagine mine project in the Pilbara,bringing its stake to 75%as it increases output to 6 million tonnes per annum next year.
He added that"That's all I know,that's all I care about.Will it help the others,possibly?We'll have to wait and see."
He said BC Iron had been criticized over its partnership with Fortescue but the company had achieved iron ore exports in 2011.
Mr Nev Power CEO of Fortescue said that any infrastructure sale would take place at full and fair market value and on the basis that the current efficiency of infrastructure and mining operations are not affected.
