re: Ann: Positive Pre-Feasibility Study for M... Peoples...

re: Ann: Positive Pre-Feasibility Study for M... Peoples thoughts

My problem with BRM is that PFS presumes access to existing railroad - worst case by building a spur line to FMG's

BHP recent announcement Digger and Dealers indicated they would never have spare capacity. WA Govt may force change will be interesting. Wont happen quickly IMO.

Fortescue has not quite proved as supportive or generous as they perhaps led others to believe in their arguments to access RIo and BHP railway lines.

Rail and Port access are the keys. Even to build a spur line is going to take substantial time. The rail line was what almost bought FMG undone.

FMG's price for rail access by BCI


Young has paid a high price for this achievement -- handing over half his Nullagine iron ore project to Andrew Forrest in return for rail access -- but has been very philosophical about it, accepting that half a mine is better than one he cannot develop because of transport logistics.

It is understood Forrest's Fortescue Metals Group (FMG) has just signed off on the feasibility study compiled by Young's BC Iron (BCI) for Nullagine, which is located near FMG's Chichester operations. The deal forged earlier this month gives FMG 50 per cent of Nullagine, where there is a 89 million tonne resource (of which about a third is direct-ship ore), in return for allowing the iron ore on its existing railway.