Yilgarn Infrastructure has submitted a $2 billion open access multi-user regional rail network proposal to the Western Australia Government.
The rail network would connect the iron ore mines of Western Australia’s Mid West with the proposed Oakajee Port.
The proposal, designed to support WA Premier Colin Barnett’s commitment to develop a new deep water port at Oakajee, allows the early establishment of the iron ore throughput required to underpin the successful development of the port.
The rail network is expected to create around 3000 jobs and generate up to $200 million a year in royalty and taxation revenues.
Yilgarn executive chairman John Saunders said the proposal also includes an interim infrastructure option to facilitate increased exports through the Geraldton Port which would provide much needed cash-flow to the region’s mines.
“This option is an innovative measure to enable the mines to develop sooner, giving them early cash-flow options in a difficult economic environment. It would help reduce the risks associated with the financing of the Oakajee Port; ensure early royalty revenue to the State Government and would bring employment and economic stimulus to the Mid West,” Saunders said.
“Yilgarn’s project proposal reflects our long-term plans to provide open access, multi-user rail to service all the Mid West region’s mines. This project will create a rail transport network that enables the early development of the region’s iron ore industry and also unlock other potential export resources.”