Peculiar Knob award iron ore rail contract

WPG Resources have announced a rail haulage agreement with Genesee & Wyoming Australia (GWA) for iron ore transportation from Peculiar Knob.

The agreement will see GWA will transport approximately 3.3 million tonnes of hematite iron ore annually.

Starting in the second quarter of 2012, the trains will operate from a siding near Wirrida in South Australia and run down to the bulk export facility in Port Pirie.

It will operate for a minimum of five years, but may be extended if further iron ore deposits are developed.

The contract is expected to generate around $50 million for GWA, but is dependant on WPG obtaining final pproval for two permits relating to mine and port infrastructure.

The miner expects to be granted these permits by July this year.

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