West Perth-based Midwest Corporation Ltd's efforts to transfer its haulage operations from road to rail by the end of September has hit another snag, with an Environmental Protection Authority assessment due to delay the project by a further six months.
Planning and Infrastrucutre Minister Alannah MacTiernan has pushed the industry hard to use rail in the transport of ore to Geraldton, but relented when the mining companies have failed to meet her targets.
Midwest had previously won an extension of the deadline to September because of delays in negotiating a rail haulage agreement with ARG and the commissioning of its rail wagons.
The company today announced that it had taken delivery of 64 rail wagons at the Port of Geraldton, but would not be able to use them until the environmental impact of the construction of a ore transfer facility at the Tilley railway siding was assessed.
The company has applied to Ms MacTiernan for an extension of the deadline to March 2008.
The full text of a company announcement is pasted below
Midwest Corporation is pleased to announce that is has taken delivery of 64 rail wagons at the Port of Geraldton.
These specially modified wagons have been acquired from China South Locomotive and Rolling Stock Industry (Group) Corporation which is already a supplier of wagons to the region.
The wagons will be used to transport the company's iron ore in the mid west region of Western Australia once the transition from road to rail is facilitated.
It has been the company's intention to make the change to rail in September 2007 however, due to circumstances beyond its control, this is now not possible.
The Environmental Protection Authority (EPA) will today advertise that it has set a level of assessment at an Assessment on Referral Information (ARI) for the company's proposed ore transfer facility at Tilley siding.
This level of assessment means that in all probability, construction of the siding will not commence until the end of September. Construction is estimated to take 18 weeks.
This has the effect of delaying the company's transition from road to rail.
The company has requested that the Minister for Planning and Infrastructure, the Hon Alannah MacTiernan consider an extension until March 2008 given that the circumstances are beyond the company's control.
This request in no way diminishes the company's commitment to move to rail transportation as soon as practicable.
Midwest is endeavouring to conform to the approvals process as expeditiously as possible.
