Statement by CCI Chief Executive James Pearson

The joint venture arrangements put forward by Rio Tinto and BHP Billiton propose a significant change in the way a number of Western Australia’s iron ore deposits are owned and operated.

The proposed joint venture is a business decision endorsed by the Boards of the two companies. Both BHP Billiton and Rio Tinto have a long and established history in Western Australia, and have made major contributions to the development of the State, particularly the regions.

The joint venture, if it was to proceed, has the potential to unlock more of Western Australia’s mineral wealth by paving the way for new and expanded iron ore developments in the State’s North West. The deal would allow both miners to operate more efficiently, better use existing infrastructure, and as a result, further improve their international competitiveness.

CCI, which represents more than 5,000 mostly small and medium businesses across the State, will examine the detail of the joint venture proposal, and assess what it will mean for local companies which are major suppliers and contractors to Rio Tinto’s and BHP Billiton’s Western Australian iron ore operations.

CCI, through its management of the Industry Capability Network, and the Project Connect vendor registration system, works closely with project developers, including BHP Billiton and Rio Tinto, to ensure full, fair and reasonable opportunities for local contractors in the State’s world class resources industry.

The deal requires local, national and international regulatory approval before it can proceed. This detailed process, which could take up to a year, will carefully scrutinise the joint venture arrangement to ensure competition in the iron ore industry.