ml comments as promised, page-2

Thanks for that.


This article is in the SMH today.


Gindalbie backs Yilgarn's WA rail plan
Email Print Normal font Large font July 6, 2007 - 1:29PM

Yilgarn Infrastructure Ltd's plan to build port and rail facilities in Western Australia's mid-west has received a boost through the backing of iron ore hopeful Gindalbie Metals Ltd.

Gindalbie on Friday threw its weight behind the Yilgarn option, signing an agreement to explore opportunities for the longer-term needs of its emerging operations in the mid west.

Yilgarn has been going head-to-head with iron ore miner Murchison Metals Ltd, which is backed by Japanese giant Mitsubishi Corp, and has a competing infrastructure proposal for the region.

The two groups are looking to establish a rail and port network to service the emerging mining industry in the mid west, which is constrained by the lack of infrastructure.

Gindalbie managing director Garret Dixon said it was important for the company to accelerate strategic planning for its future infrastructure requirements.

The iron ore hopeful's flagship is the Karara joint venture with China's second largest steel producer, Anshan Iron & Steel Group Corp (Ansteel).

"Given the scale of the Karara magnetite deposit ... our intention is to move as rapidly as possible to expand the project above its initial planned production levels," Mr Dixon said.

"To support this expansion, we will need to be able access new and upgraded port and rail infrastructure in the mid west region and it is important to start planning for this now, particularly in light of the increasing demand with new production coming on stream from other iron ore companies."

Yilgarn chairman John Saunders said the agreement with Gindalbie was an important step forward for studies of the port and rail project.

"I welcome Gindalbie's commitment to work with Yilgarn to progress this important project and look forward to further commercial negotiations with each of the mid west region's other mines and their partner's," Dr Saunders said.

"There is a window of opportunity for the mid west presented by the demand for iron ore and we must work together to ensure we grasp it."

The proposal by Yilgarn has also been backed by iron ore miner Midwest Corp, which operates Koolanooka/Blue Hills project, 200 kilometres east of Geraldton.

Yilgarn's proposal involves the construction of a rail network and new port at Oakajee, north of Geraldton.