30/05/2013 - 15:54

Brockman signs MOU with China backer

30/05/2013 - 15:54

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The operator of one of China's largest ports has signed up as a potential investor in new rail and port infrastructure to service iron ore miners in the Pilbara.

Brockman Mining today announced the memorandum of understanding with Tianjin Port Group, "to explore the opportunity for a potential strategic investment by TPG" in Brockman's mine, rail and port infrastructure.

The infrastructure includes Brockman's interest in a proposed 50 million tonne per annum port facility at South West Creek in Port Hedland.

The capacity allocation is held North West Infrastructure, an entity that is jointly owned by Atlas Iron and Brockman.

Both companies need the new port and accompanying rail infrastructure to underpin planned mine developments.

Brockman said the Tianjin deal also related to rail infrastructure to support its Marillana mine; it is understood this referrers to a spur line.

The Tianjin deal comes two weeks after Brockman's CEO of Australian operations Russell Tipper announced it was seeking access to Fortescue Metals Group's existing rail line, under state government access rules.

In addition, Brockman, Atlas and rail operator Aurizon are exploring the joint development of a new East Pilbara railway.

Brockman chairman Kwai Sze Hoi said the Tianjin deal would support either infrastructure solution.

Tianjin Port Group is the operator of Tianjin Port, the largest port in Northern China and main maritime gateway to Beijing. In terms of port capacity, it is ranked fourth worldwide.

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