New rail infrastructure for East Pilbara

Iron ore miners Brockman and Atlas Iron have partnered with QR National to build new rail and port infrastructure in the Pilbara.

According to the companies, they have entered into an Alliance Study Agreement to carry out "a joint evaluation of a fully integrated mine, rail, and port logistics solution in Western Australia's East Pilbara region".

In QRN's release late yesterday, it explained that the "Western Australian iron ore market is currently dominated by single-company railways".

"[QRN] is evaluating the development of a standard gauge, multi-party railway to connect iron ore mines in the East Pilbara to Port Hedland."

The heavy haulage company added that "the railway would be developed on the basis of miners connecting and accessing the railway through staged development.

The study is scheduled for completion by the end of the year.

It has been welcomed not only by the miners in the alliance, but also iron ore juniors in the region.

Dynasty Metals, which operates in the region, stated that "the proposed rail corridor is likely to be less than 75 kms from [its] Spearhole Deposit, which could significantly reduce capital expenditure costs" the project.

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