Infrastructure access – the development issueAccess to existing...

Infrastructure access – the development issue
Access to existing rail and port infrastructure is critical to development and to value.
A 2Mtpa mine at Robertson Range could truck ore to BHP Billiton’s Jimblebar railhead
for transportation. Depending on the outcome of negotiations – and these are
unlikely to formally commence until the scope of the resource and development
options are crystallised – it could be sold at the mine gate or railhead, or railed under
an access agreement that may or may not involve a marketing component and a cost
recovery and profit share structure. The conditions of any agreement would likely
reflect the potential of other options for FerrAus, the conditions in the iron ore
market, the final outcome of the legal cases concerning third party access now afoot,
and any changes to government legislation.
A production rate of 4-5Mtpa would support construction of a conveyor from
Robertson Range to Jimblebar. The definition of reserves at Davidson Creek would
enhance the potential for the 5Mtpa-plus operation, and would also enhance the
financial returns from a belt conveyor from Robertson Range through Davidson Creek
to Jimblebar.

This report gives some clues, but the end result will depend on the resource, more news to come.