Mineral Resources has signed a deal with QR Freight to transport iron ore from its planned Yilgarn project to Kwinana.
Mineral Resources has signed a deal with QR Freight to transport iron ore from its planned Yilgarn project to Kwinana.
Operations are expected to commence in January next year with QR to initially move 4 million tonnes of iron ore.
See announcement below:
Mineral Resources is pleased to announce an important advance in the development of the Yilgarn iron ore project.
MRL has entered into a Heads of Agreement with QR Freight for the transportation of iron
ore from project to Kwinana Port, with operations scheduled to commence in January 2011.
The initial annual haulage is 4mtpa, with a provision to rise up to 10mtpa with the Yilgarn Stage 2 expansion.
The QR agreement represents a key step towards finalising a formal Rail Haulage Agreement for the provision of rail services from the Yilgarn Project in the Central Yilgarn Region of Western Australia to Kwinana Bulk Terminal south of Perth. The Agreement is subject to MRL being successful in obtaining capacity to export product from KBT and successfully negotiating an agreement in respect of the port handling arrangements. This is a significant step in the development of the Yilgarn Project and is consistent with MRL's commitment to accelerate the development of this project when it completed the acquisition of Polaris Metals in January 2010.
Yilgarn Stage 1 is on track to commence production in January 2011, with MRL working towards increasing production to 10 Mtpa.
MRL Managing Director Peter Wade said the accelerated development of the Yilgarn was very pleasing, both for long-standing MRL shareholders and former Polaris shareholders who accepted MRL's takeover offer.
"At the time, we indicated our commitment to accelerate the development of this highly valuable project - and that's what we have done," said Mr Wade.
"The formalisation of the heads of agreement represents a major milestone for MRL and is a significant step in the development of the Yilgarn Project.
"During the Polaris takeover process we committed to expediting the development of the Yilgarn Project and this agreement with QR is a huge step forward in achieving that goal."
"Working with highly experienced partners such as QR is part of a fundamental strategy to develop and maintain successful iron ore operations in the Yilgarn region of Western
Australia."
"We welcome QR Freight as a new partner and we look forward to working with them to achieve world class performance in developing and expanding the iron ore production and haulage from the Yilgarn Project."