Gindalbie Metals has announced the signing of long term rail access agreements for its Karara ion ore project.
It signed the agreement with WestNet Rail, which owns and operates 200 kilometres of narrow gauge rail line from Morawa to Geraldton.
The agreement includes provisions for WestNet to undertake a major $450 million upgrade of its existin rail network to provide capacity for Karara’s stage one production of 10 million tonnes per annum, and its stage two expansion to 16 million tonnes per annum.
According to Gindablie, the second stage can be accommodated through Geraldton without the need for access to Oakajee Port.
In June, the miner signed a rail haulage agreement with QR National to transport its magnetite concentrate.
Gindalbie is currently constructing a new 85 kilometre spur line from the project to the Tilley Siding, near Morawa, to connect with WestNet’s rail network.
Tim Netscher, Gindalbie’s new managing director, said the signing the of the long term rail agreements locked in a rail solution for the Karara project.
“This is a great outcome for the Karara project and for the Mid West iron ore industry, with both QR and WestNet Rail committing to a significant investment in upgrading and enchancing the rail infrastructure in the region.”
Netscher officially joined Gindable as MD in April.