PERTH (miningweekly.com) – A new 50-million ton a year development at Port Hedland to cater for the shipping needs of the North West Iron Ore Alliance (NWIOA) could be operational in 2013 and would cost A$2,1-billion, a prefeasibility study has found.

NWIOA – a group promoting the junior iron-ore sector in Pilbara – on Monday reported that the study had found that port development project would be capable of meeting the shipping needs of the iron-ore companies and would optimise the future development of their projects.

The port development will be located at South West Creek in the inner harbour of Port Hedland and comprise two berths, as well as supporting infrastructure and dedicated materials unloading and stockpiling facilities.

The study concluded that the port infrastructure and materials handling facilities, including the berths, could be operational during the second half of 2013.

The NWIOA said that the report’s favourable conclusions have paved the way for the alliance to start work on a definitive feasibility study, including engineering, as well as an in-depth assessment of the various funding alternatives. Simultaneously, work would continue to secure all the necessary approvals in support of the port’s development.

The new port would provide a “vital service” to the NWIOA's three companies; Atlas Iron, Brockman Resources and FerrAus; ensuring they could benefit from guaranteed access to an independent, reliable and cost-effective shipping facility.

The NWIOA has worked with the Port Hedland Port Authority in relation to key design principles and the location of facilities. Work has already started on the dredging approvals with the execution of a joint dredging agreement between NWIOA, other proponents and the Port Hedland Port Authority.

NWIOA CEO Tony Considine said that the study confirmed the port development stood to be an “extremely viable and effective” project and would play a significant role in the development of the next tier of Australian iron-ore producers.

“The study highlights the financial, technical and commercial benefits of the NWIOA port project not just for our shareholders, but for Western Australia generally,” Considine said.

The alliance would now proceed with securing the necessary approvals in consultation with the community and other relevant stakeholders.

Completion of the prefeasibility study comes as the NWIOA progresses negotiations with rail owners on behalf of its shareholders to secure a rail transportation solution in the Pilbara.

The Australian Competition and Consumer Commission has granted interim authorisation to enable these collective negotiations to proceed without delay.