WestNet Rail has announced the signing of a key long-term rail access agreement for the Karara Iron Ore Project with Karara Mining Limited (KML).
The 15 year agreement, due to commence in 2012, will see WestNet Rail providing access to the rail network, rail infrastructure support services and undertake an approximate $450 million upgrade.
The JV company signed a rail haulage agreement with QR National Freight to transport its ore over 10 years in June.
WestNet Rail is upgrading the existing rail infrastructure from Morawa to Geraldton, providing capacity for Karara’s Stage One production of 10mtpa and the anticipated Stage Two expansion to 16mtpa.
Once completed, iron ore will be railed from the Karara Iron Ore Project site along a new 85km spur line to Tilley Siding near Morawa, where it will connect to WestNet Rail’s upgraded railway and continue through to Geraldton Port.
Paul Larsen, WestNet Rail’s Chief Executive Officer said the works to upgrade the 200km of rail from Morawa to Geraldton had already commenced, with WestNet Rail and its owners Brookfield Infrastructure Partners focussed on delivering a successful project for its important new customer.
“WestNet Rail looks forward to working in partnership with KML to help bring the Karara Iron Ore Project to market and this significant infrastructure upgrade provides a platform for the launching of the Midwest iron ore province,” Paul said.
WestNet Rail is an experienced rail infrastructure operator, managing around 5,100 kilometres of rail infrastructure throughout the southern half of Western Australia including rail construction and maintenance, track access, train control and network safety on one of the State’s most important pieces of transport infrastructure.
Yep. We supported them. We campaigned for them. They are going ahead. We are happy for them. We are going down the gurgler, because the busines is from fifo and from Perth, not local as promised.
Peter
big companies never do what they promise.