Gindalbie Metals has shipped its first train load of iron ore from its Karara mine.
This milestone is the first time Karara's integrated mine and rail logistics chain has been used.
It comes after the commissioning of 85 kilometres of rail spur connecting the mine to existing rail networks in WA.
The line was built by Macmahon, which initially won the $86 million contract back in 2010.
While the ore is already being transported, it will be stockpiled for the time being while final port works are completed.
More than two million tonnes of hematite has already been stockpiled in readiness for the full commissioning of the logistics chain.
The rail spur runs from the rail loop at Karara to the Tilley Siding, near Morawa, where it connects with the existing 200 km railway.
Tim Netscher, Gindalbie's managing director, welcomed the first rail load.
"It's not ever day that Western Australia sees the completion and commissioning of such a significant piece of transportation infrastructure, with our new 85 km long rail spur now linking with the existing Midwest rail network.
"With the Karara Export Terminal at Geraldton due to be completed and commissioned shortly, this should provide evidence Karara is now in the home straight….and moving towards production of first magnetite concentrate by the end of September 2012."
First production will be followed by a six month ramp up to Stage One capacity of 10 million tonnes per annum, which is split into 8 mtpa of magnetite concentrate and 2 mtpa of DSO.