Project Update: BC Iron-Fortescue joint venture

BC Iron has joined with Fortescue Metals (FMG) to develop the Nullagine Iron Ore Project in the Pilbara.

BC Iron has joined with Fortescue Metals (FMG) to develop the Nullagine Iron Ore Project in the Pilbara.

FMG will provide rail haulage, port handling and ship loading facilities to develop the project and position the company as the next iron ore producer in the Pilbara.

Expansion work will be based on BC Iron’s current feasibility study which is examining a 1.5Mtpa start-up, followed by a 3Mtpa ramp-up.

BC Iron managing director Mike Young said the joint venture will prompt a range of infrastructure upgrades at the site and improve systems and facilities in the region.

“Rail haulage and port service agreements will overcome critical infrastructure barriers to iron ore production,” he said.

Young expects the agreement will also boost iron ore development in the area and bring new jobs and opportunities to the region.

“This is an important step for the continued development of the junior iron ore sector in the Pilbara,” Young said.

The development is subject to a range of feasibility studies and approvals which are set for completion by the end of June.

Production is expected to get underway by early 2010 if all approvals are given the green light.

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