Gindalbie has signed a 10 year rail haulage agreement with QR National for its Karara iron ore project.
The agreement, with QR’s subsidiary Australia Western Railroad, will see it transport 10 million tonnes of magnetite concentrate and hematite direct shipping ore.
Its contract is worth approximately $900 million.
Following ramp up, QR will provide four trains per day, with 100 wagons per train.
The miner and QR have also signed a relationship agreement to work together on any future expansions.
Gindalbie managing director Tim Netscher said the signing of this agreement is a major milestone for the Karara project.
“Work on the Karara project is moving rapidly, with approximately 1300 currently working on the construction of the processing plant, mining operations and the entire supporting infrastructure such as rail spurs; high voltage power lines; water pipelines and the Geraldton Port,” Netscher said.
“This work not only sets up Karara for its start up and expansion phases but brings vital infrastructure to Gindalbie’s doorstep in the Mid West and enhances the opportunities to develop standalone projects on our 1900 square kilometer holding.”
QR CEO Ken Lewsey said that the haulage company has a long standing presence in WA, and is the largest hauler of iron ore outside of the Pilbara.
With the signing of the agreement, it is now “on track to treble our iron ore tonnages in the next three years,” Lewsey said.
The miner recently began hematite shipping operations with Sinosteel Midwest Corporation.
To date, more than 100 000 tonnes of DSO has been hauled by QR, and since May haulage has surpassed 60 000 tonnes per month.