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Brockman seeks access to Fortescue rail line

16th May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore miner Brockman Mining has made a play to gain access to rail infrastructure held by its bigger rival, Fortescue Metals.

Brockman reported on Thursday that it had submitted a proposal to gain access to part of the below-rail infrastructure owned by The Pilbara Infrastructure (TPI), a subsidiary of Fortescue.

Through the application process, Brockman was looking to negotiate terms of access, including price.

“Submission of the access proposal to the TPI railway reinforces our continued focus on securing an infrastructure solution that delivers a timely commercialisation of our Marillana project,” said Brockman Australia’s CEO Russell Tipper.

The access rights sought are to TPI’s railway infrastructure from around the 219 km point on the TPI main line, from which point Brockman would construct a rail spur to its Marillana project and to the 23 km point on the TPI main line, near Port Hedland, from which Brockman would construct a rail spur to the proposed North West Infrastructure port facilities, in Port Hedland.

The company was hoping to haul up to 20-million tons a year of hematite ore from Marillana over 20 years, starting in 2016.

Tipper noted that the company would explore “all reasonable” rail infrastructure options to assist it in achieving this objective.

“In no way does the submission of this access proposal diminish our commitment to the alliance integrated rail and port study. We recognise that there is more than one credible rail option available to Brockman, and we need to pursue all of these options simultaneously.”

Brockman, along with fellow producer Atlas Iron and freight specialist Aurizon were investigating the possibility of an independent railway to service iron-ore mines in the east Pilbara, linking them to Port Hedland.

The alliance rail study was now being re-scoped to deliver an integrated rail and port study, incorporating work completed to date on the proposed North West Infrastructure port facilities.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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