railway east discovery, page-26

United Minerals is supportive of the State, TPI and TPI's parent, Fortescue Metals Group(FMG), to provide rail access to third parties and is prepared to meet its fair share of the cost in achieving such access if it were to seek access inside the Rail Access Code. It is well recognised that TPI below rail facilities potentially offer the most cost effective method of delivering ore transport services to the eastern Pilbara. United Minerals recognises the
significant elements of judgment required by regulators in reaching practical determinations that will fairly balance the interests of rail infrastructure access providers and seekers. In accordance with other rail Access Regimes such access should be on fair terms to both parties similar to the Authorities Determination for WestNet Rail (WestNet) treating the rail as a stand-alone business.

Potential tonnages for shipment within the TPI rail catchment
The United Minerals Railway Prospect is located 330km south of Port Hedland and production is due to commence in 2010 at an initial rate of 2-5mtpa increasing to 10mtpa during its target mine life of 10-20 years.
Other producers or potential producers within the TPI rail catchment include FMG who have already indicated an intention to initially transport some 45mtpa over the TPI infrastructure, doubling this to 80mtpa and rising to 120mtpa by 2011 as Christmas Creek is developed.
2 , Hancock Prospecting with initial production planned as 35mtpa rising to 75mtpa and the members of the North West Iron Ore Alliance (Alliance) with plans for initial tonnages of 50mtpa from 2012 rising to 80mtpa by 2020

Grade/quality in relation to supply viability
The United Minerals Railway Prospect is very high grade at 61% Fe with low overburden rates. The deposits listed above are direct-shippable high grade ores that do not require
beneficiation and are low cost producers in the lowest quartile of the global supply curve. The grade and quality of the ores in the catchment area is generally of a comparable or somewhat higher quality than that of FMG's Cloud Break/Christmas Creek tenements. As such, they are likely to be well positioned to remain viable across the price cycles compared to lower grade ores such as India and China or ores with a freight rate disadvantage such as
Brazil OR South Africa to Asian market.