PREMIER Colin Barnett has told Fortescue Metals Group and Aquila Resources to bury their differences and form a joint venture to develop the Anketell Port.

Speaking at the launch of the State Government’s new port strategy, Mr Barnett gave the clearest indication yet he would insist that a third party be responsible for building and operating the port saying he would not countenance a single iron ore company controlling the new development.

Mr Barnett said that “I’m not going to have one iron ore company control a port and hold another iron ore company to ransom.”

He said that “I’m not going to allow that, so the two companies need to come together my suggestion to them is that together to form a new entity, maybe a (joint venture) to develop a port, and they bring in independent infrastructure providers to manage that construction and manage the port.”

Aquila Resources and Fortescue spent much of last year sparring over the size and the timetable for the new port, which would initially allow the shipment of 100 million tonnes a year of iron ore from the Pilbara. This could eventually be expanded to a 350 million tonne a year capacity.

The two companies are known to have been discussing potential joint venture arrangements, but those discussions have not yielded a tangible result to date.

Mr Barnett was expected to announce the preferred proponent for the development late last year, but refused to put a timetable on a State Government decision.

But he had a blunt message for Aquila and FMG, indicating he was unlikely to back either company if they bid to control development of the port individually.

(Sourced from www.perthnow.com.au)