.. our neighbours to the immediate north of Johnston Range.
UNLISTED iron ore developer Cashmere Iron has signed port and rail agreements for its 1 billion tonne namesake project in the Mid West region of Western Australia.
A framework agreement has been signed with Esperance Ports Sea & Land under which Cashmere will contribute to the capital costs associated with the expansion of capacity at the multi-user port at Esperance by 10 million tonnes per annum from the fourth quarter of 2012.
The port currently ships around 10.7Mtpa, with 8.8Mtpa being iron ore.
Cashmere will use 5Mtpa of the increased capacity.
A second-stage expansion of a further 10Mtpa is also being planned, with Cashmere to be entitled to an additional 5Mtpa.
Cashmere said it has been involved in the review consultation process after expressing an interest in the development.
However, the company remains committed to the development of the Oakajee port at Geraldton, from which it hopes to ship beneficiated hematite and, later, magnetite.
Together with Westnet Rail the company will review the railway in the region.
The Cashmere Downs project is 180 kilometres from the Menzies railhead and can use the standard gauge Leonora-Kalgoorlie-Esperance rail line.
A study has shown cost-effective upgrades will ensure the line can handle increased tonnage.
The company will initially truck ore to Menzies, but is planning to eventually develop a rail line from the mine to the railhead.
Cashmere is completing a bankable feasibility study on the direct shipping ore component of the project, which could see the company start production from 2013.
Cash flow from the DSO operation will fund further production plans.
The company has completed level 2 environmental studies and heritage surveys and has native title agreements in place.
The BFS will be handed down in the first quarter of 2011.
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