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Tennant the centre of rail freight plan
22/08/2008 8:43:00 AM
A FEASIBILITY study into a rail link between Tennant Creek and Mount Isa is due for completion next month.

The link, which could turn Tennant into one of Australia’s major centres of freight activity, would be worth around $1.5 billion.

The Australian Transport and Energy Corridor’s report which investigates the economic viability of the proposal would be submitted to the Northern Territory Government and the Mount Isa City Council, although so far there is no indication as to who would foot the bill for the project.

The rail link is not a new idea however it is back on the agenda because of new developments in the mining industry.

Rail freight costs are much cheaper than road freight costs and the link would also benefit Queensland mining companies which could send product to Asia through the Darwin Port, saving around 10 days on sea travel.

Several mining companies are keen on seeing the rail link established including the Perth-based Minemakers which would soon be mining rock phosphate ore on its Wonarah project approximately 230 kilometres north east of Tennant Creek.

The mine has an minimum life span of 20 years with production set to begin in 2010.

Minemakers director, Andrew Drummond, said around three million tonnes a year of rock phosphate would be transported by road to Tennant Creek and then by rail to Darwin.

But he said a rail link between Tennant Creek and Mount Isa would provide the company with the ability to double the load.