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Flinders, Brockman agree Pilbara MoU

4th July 2013

By: Creamer Media Reporter

  

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JOHANNESBURG (miningweekly.com) – Junior miners Flinders Mines and Brockman Mining have agreed to investigate the possibility of an aggregation agreement, covering production from their respective Pilbara iron-ore projects, as well as infrastructure and transport options.

Flinders executive chairperson Robert Kennedy said in a statement that an aggregation of tonnage would place both groups in a strong position to progress the proposed marine port facility at Port Hedland and the East Pilbara Independent Rail project.

Brockman, through its joint venture interests in North West Infrastructure, has joint rights to codevelop a 50-million-tonne-a-year port facility at Port Hedland, which, when constructed, would include unloading, stockpiling and ship loading infrastructure.

Together with Aurizon and Atlas Iron, Brockman is also studying the development of a heavy haulage railway in the East Pilbara to connect certain iron-ore mines to the new port facility.

“The potential aggregation of tonnages ensures a critical mass that could further enhance the economic viability of any proposed shared infrastructure solutions for junior iron-ore miners in the Pilbara,” Brockman Australia CEO Russell Tipper stated.

Brockman owns the Marillana and Ophthalmia iron-ore projects, while Flinders is developing the Pilbara Iron Ore Project (PIOP).

“The terms of the Flinders-Brockman memorandum of understanding (MoU) are currently nonbinding and, while Flinders has engaged widely with a number of parties potentially interested in providing infrastructure or other product solutions to PIOP, it is Flinders’ intention to give high priority to the commitments encapsulated in today’s MoU,” Kennedy said.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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