The development of new port and rail infrastructure in Western Australia’s Mid West has received another boost with an agreement announced between Yilgarn Infrastructure Ltd and iron ore group Gindalbie Metals Ltd.
Yilgarn Chairman Dr John Saunders welcomed the growing co-operation with Gindalbie Metals and its JV partner Ansteel of China. He said the Memorandum of Understanding (MoU), signed between the company and the Mid West iron ore group provided a basis to work together on the infrastructure needed to accommodate the longer-term needs of the expansion phase of Gindalbie’s Karara magnetitie and hematite projects.
Gindalbie is one of several mines in the region that need a new port at Oakajee with supporting rail infrastructure if it is to expand iron ore production beyond its initial planned 10 million tonnes a year and take advantage of China and North Asia’s growing demand for the resource. The existing Geraldton Port, 25km south of the Oakajee site, is expected to reach capacity in the next few years.
The announcement follows a similar agreement between Yilgarn and Midwest Corporation (ASX:MIS) to work together with others to develop the estimated $2 billion infrastructure.
Yilgarn Chairman Dr John Saunders said the agreements were an important step forward for studies of the port and rail project.
“I welcome Gindalbie’s commitment to work with Yilgarn to progress this important project and look forward to further commercial negotiations with each of the Mid West region’s other mines and their partners,” he said.
“The co-operation of all stakeholders is important to help the Oakajee port-rail vision become reality. The studies will cover port and rail engineering and operations; utility requirements, land acquisition and access issues; environmental and Aboriginal heritage issues; consent and approval process.
“There is a window of opportunity for the Mid West presented by the demand for iron ore and we must work together to ensure we grasp it.”
Yilgarn Infrastructure’s Oakajee Port and Rail Project comprises the design, construction, financing and operation of a new port at Oakajee, supported by a multiuser railway aligned to service all the region’s commercial mines, enabling iron ore to be delivered to export markets at the most competitive prices. Open book, third party access will be guaranteed, ensuring the Mid West avoids the infrastructure access problems experienced in the Pilbara.
Yilgarn has a conditional debt-finance agreement with China’s EXIM Bank to fund the project and has secured significant support from sophisticated Australian and Chinese investors.
- 09 Jul 2007
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