The road is an important enabler for the achievement of State Government goals, relating to a strong focus' on the regions, and facilitating economic and regional development. Completion oftlle Karratha~Tom Price Road Stage 3 will improve access to mining, tourism and pastoral land. With tile completion of Stage 4, local access would be improved, as well as access for nearby Aboriginal communities. Balla Balla Infrastructure (881) is proposing to develop port facilities, rail and an above ground conveyer network which will connect small iron ore mines in the region. Flinders Group will operate an initial mine, approximately 90 kilometres south of the end of the existing sealed section of the Karratha - Tom Price Road. SBI and Flinders, together with the City of Karratha and the Shire of Ashburton, require road access to be established to the mine site to enable a predominantly Drive In Drive Out (DIDO) operation based out of the Karratha town site, utilising existing local contractors. The Pilbara Development Commission has estimated the economic benefit to be in the order of $1.6 billion for full DIDO operations.
Companies in the Pilbara, including BBI, Flinders Group and Rio Tinto Iron Ore, would be able to build on their economic and social contribution to the region, as per the Pilbara Collaboration Charter (signed in November 2017). These mining companies in particular would greatly benefit from a fully sealed route in order to provide safe road access to their mining operations. Funding contributions from the Pilbara mining sector and Local Government will be progressed but are at a very early stage.
OpportunIty
Karratha-Tom Price (I
FMS Price at posting:
4.8¢ Sentiment: Buy Disclosure: Held
