Junior iron ore explorer BC Iron has secured an in-principle agreement with Fortescue Metals Group (FMG) for the provision of rail haulage and port services in Western Australia’s Pilbara region.
The junior announced yesterday that it had secured access to FMG’s facilities for its Nullagine Iron Ore Project, located approximately 310 km from Port Hedland.
The agreement provides for an initial production target of 3 million tonnes per annum escalating to 5 million tonnes per annum when port and rail facilities are expanded, the company said in a statement.
Market analysts have been awaiting news of BC Iron’s talks with FMG, given the miner is a staunch advocate of third-party infrastructure access.
While final details are being worked out, the company’s managing director Mike Young said the deal would overcome the critical barriers to production caused by lack of open access to rail and port facilities.
“We are pleased that FMG and BC Iron were able to follow on from the intent of the Memorandum of Understanding signed in 2007,” he said.