fmg lifeline for brockman

Fortescue lifeline for Brockman
Mathew Murphy
February 8, 2011

BROCKMAN Resources wants to build up to 100 kilometres of rail line to connect with Fortescue Metals' line to get its iron ore to port.

Last year the Australian Competition Tribunal rejected a claim by West Australian iron ore juniors to be granted access to BHP Billiton's Newman line and Rio Tinto's Hammersley line, saying the costs of opening the rail lines up to the smaller miners ''were so great that access would be contrary to the public interest''.

But the tribunal did allow access to BHP's Goldsworthy and Rio's Robe River lines, which cart less iron ore.
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Now, according to documents lodged with the federal Environment Department, Brockman will look at building its own rail line from its Marillana iron ore project in the Pilbara to meet up with Fortescue's line about 190 kilometres to 220 kilometres from Port Hedland, depending on the option selected.

The first option would involve building 95.3 kilometres of rail, while the second would require 70 kilometres of rail. The line would run parallel to BHP's existing one.

In Brockman's feasibility study, completed in September, the company said costs for its key Marillana project could reach $1.9 billion if it was forced to build its own infrastructure.

It expects to make a final investment decision later this year but is still in talks with BHP in the hope of being able to piggyback on its rail line.

http://www.smh.com.au/business/fortescue-lifeline-for-brockman-20110207-1ak8q.html