Photo by: Reuters
PERTH (miningweekly.com) – Korean major Posco and American Metals & Coal International (AMCI) have signed on for the infrastructure project to develop the West Pilbara iron-ore project.
Following the takeover of diversified junior Aquila, China’s Baosteel and freight services provider Aurizon have been in negotiations with AMCI and Posco to become parties to the existing infrastructure framework agreement (IFA) to support the West Pilbara project.
ASX-listed Aurizon on Thursday reported that the two parties had acceded to the IFA, with the agreement being amended to address a number of project development process matters, and to revise some of the key milestones.
Under the new agreement, Aurizon has been provided with a period of exclusivity to develop an infrastructure solution for the West Pilbara project, which would end in January 2016.
The parties’ immediate focus would be on finalising an integrated rail, port and mine schedule for the project, with the aim of starting exports by 2017/18.
The first stage of the West Pilbara project would involve the development of a new deep-water port at Anketell, and a 280 km railway to support at least a 40-million tonne a year throughput, from eight mining areas.
The infrastructure could be expanded in the future to accommodate additional tonnage from both foundation customers and other miners, with the Anketell port estimated to have a potential to export about 350-million tonnes a year of ore.
Aurizon said that any infrastructure development would be subject to agreement by the parties, and a final investment decision by Aurizon itself, which would only occur following detailed planning and feasibility studies concurrent with the development of the West Pilbara iron-ore mines, and entries into appropriate take-or-pay contracts to support the tonnage profile for viable rail and port infrastructure.
Aurizon further told shareholders that the company was committed to divesting its 15% shareholding in Aquila following the successful development of the West Pilbara rail and port infrastructure.