Sadly another copy & paste, not a good one either.
The ambitious plan for new infrastructure for the Pilbara's iron ore juniors has been dealt a blow after the expiry this week of a long-term agreement between Atlas Iron, Brockman Mining and Aurizon to study the feasibility of a new rail line to service the region.
After months of speculation about its future, amid talk Atlas was nearing a haulage agreement with Fortescue Metals Group, Brockman and Atlas confirmed yesterday the tripartite agreement had expired on July 1.
The line, initially planned with a 50mtpa capacity expanding to 100mtpa, would also have carried ore for other juniors with deposits stranded in the South East Pilbara.
Both companies said they would "continue discussions" over the potential for the development of third-party Pilbara infrastructure, but neither would discuss whether they had committed ongoing resources to the studies, and _WestBusiness _understands an agreement is unlikely to be renewed.
Instead, Brockman yesterday touted the signing of an "exclusive" deal with Aurizon for haulage services for its Pilbara iron ore. Under the deal Aurizon would develop and operate all rail, rolling stock and related infrastructure needed to transport ore from Brockman's Marillana and Ophthalmia projects. Aurizon would also build and operate any Brockman facility at Port Hedland.
But unless financial backers can be found to commit the billions needed to build a new rail line, the new agreement effectively locks the two into what is likely to be a drawn-out battle with Fortescue over third-party access to its infrastructure. Exclusivity provisions rule out any possibility of a peace deal with Fortescue unless the Andrew Forrest-founded miner backs away from its preferred haulage model of charging for an end-to-end solution for access to its rail and port infrastructure. This would be precluded under Brockman's agreement to use Aurizon rolling stock to transport its ore.
It also rules out any chance Brockman could do a haulage deal with Gina Rinehart's Roy Hill mine, at least until its three-year agreement with Aurizon is over.
Aurizon and Atlas launched formal studies into a new Pilbara line in April last year, with Brockman joining the partnership in August. The first stage was completed in two months ago, with the alliance extended until this week to consider integrating the proposed Brockman and Atlas South West Creek port facility into the proposal. Brockman ended down 0.4¢ at 5.4¢ yesterday, Atlas shed 3.5¢ to 76¢ and Aurizon was 4¢ lower at $4.20.
