The Australian Competition and Consumer Commission ruled Thursday that small iron ore producers in Western Australia's Pilbara can collectively negotiate rail track access and haulage services.

The ACCC said in a statement that it had granted a request from the North West Iron Ore Alliance (NWIOA), comprising Atlas Iron Ltd. (AGO.AU), Brockman Resources Ltd. (BRM.AU) and Ferraus Ltd. (FRS.AU).

It said that the decision meant NWIOA members and other small iron ore producers, which approached the alliance, can collectively negotiate terms and conditions including price.

The competition watchdog said NWIOA could negotiate with rail service providers in the region, including BHP Billiton Ltd. (BHP.AU), Rio Tinto Ltd.(RIO.AU) and Fortescue Metals Group Ltd. (FMG.AU), as well as any other future providers.

It said negotiations would be voluntary for both the iron ore producers and service providers.

The ACCC said it would be kept informed about changes to parties involved in any talks so it could assess whether the ruling had any competitive impact.

-By Neil Sands, Dow Jones Newswires; 61-3-9292-2095; neil.sands@dowjones.com
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