MacTiernan welcomes work start on FMG Pilbara railway

Planning and Infrastructure Minister Alannah MacTiernan has welcomed the commencement of work on Fortescue Metals Group's Pilbara railway, saying the line would provide access for other companies to export markets.

The full text of a Ministerial announcement is pasted below

The Western Australian Government welcomed the commencement of work today on the Pilbara's first privately operated open-access railway.

Planning and Infrastructure Minister Alannah MacTiernan said the 260km railway was part of Fortescue Metals Group's $2 billion Pilbara Iron Ore and Infrastructure Project.

"This project will deliver an open access port facility on the western side of Port Hedland harbour at Anderson Point as well as the rail link to Fortescue's mining operations in the Chichester Ranges," Ms MacTiernan said.

"As well as serving Fortescue, these facilities could provide other companies that are developing isolated mineral deposits across the central and eastern Pilbara with access to export markets."

"The Government has worked with the company to ensure that statutory approvals required for this project to proceed were provided as quickly as possible."

Ms MacTiernan said that the project was being developed under two agreements with the State Government.

The Railway and Port (The Pilbara Infrastructure Pty Ltd) Agreement covering the planning, construction and operation of the railway and port facilities, and the Iron Ore (FMG Chichester Pty Ltd) Agreement covered mining aspects of the project.

"Local MLA Tom Stephens helped negotiate a meaningful community development plan as part of the railway and port agreement," Ms MacTiernan said.

"This commits Fortescue to delivering social and economic benefits for Pilbara residents, including Aboriginal communities."

The company has allocated $1.5 million from 2008 until 2010 and $1million each year from 2011 onwards towards training, with those who successfully complete training programs being guaranteed employment.

"The plan also includes commitments to a regionally-based workforce, contributions to community facilities and services both in regional towns and in Aboriginal communities, local procurement of goods and services and environmental best practice.

"Fortescue has set a target for Aboriginal employment equal to 20 per cent of its workforce and will specifically include indigenous representatives on its advisory committees."

Ms MacTiernan said the efforts of staff in the Planning and Infrastructure and Industry and Resources departments meant approvals under that both agreements were finalised in time for the company to meet the deadlines of its financiers and potential customers.

The completion of the railway and port and the first ore shipment is scheduled for the end of March 2008.