16/11/2011 - 07:20

Gindalbie finalises Karara rail deals

16/11/2011 - 07:20

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ROLLING: Gindalbie has signed two key deals that will allow for the transport of ore through the Port of Geraldton.

Gindalbie Metals has completed negotiations for the last key infrastructure deals required for the development of its Karara iron ore mine, signing two key rail contracts with QR National and Brookfield Rail.

Gindalbie said today it had finalised a 10-year, $900 million rail haulage agreement with national rail operator QR National, for the transportation of up to 10 million tonnes of magnetite concentrate from Karara to Geraldton.

Haulage is due to begin in January.

The iron ore miner also annouced a 15-year rail access agreement with Brookfield Raile, the leaseholder of the existing 200km narrow-guage rail line from Morowa to Geraldton

The agreement includes provision for Brookfield to upgrade the rail line, providing Gindalbie with the capacity to increase produciton at Karara's first stage to 10Mtpa and the anticipated expansion to 16Mtpa

An associated $300 million Brookfield Rail guarantee facility for the contract was signed in September

Brookfield has already commenced the upgrade, and it is expected works will be completed in December next year.

Gindalbie’s Managing Director, Mr Tim Netscher, said the completion of the above and below rail contracts put the finishing touches to the end-to-end infrastructure solution for the Karara Project.

“With construction of the 85km spur line at an advanced stage, upgrades to the Brookfield Rail network underway, stringing of the powerline in progress, construction of the water pipeline complete and the Geraldton Port facilities taking shape, this is very exciting time for Karara as the key elements of our infrastructure solution enter into the final stages of construction,” Mr Netscher said.

 

 

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