Minemakers and Australian Transport and Energy Corridor (ATEC) have entered into a memorandum of understanding covering a financial study of the economics of a 250 kilometre rail link in the Northern Territory.
The open access standard gauge rail link would connect Minemakers’ Wonarah Phosphate Project to Tennant Creek.
The feasibility study will be managed by ATEC with appropriate input from Minemakers.
Stage One of the study will be completed by May 2009 and include preliminary financial modelling.
Subject to the outcomes of Stage One, Stage Two is planned to be a more detailed assessment in preparation for a formal submission to governments for an exclusive mandate to build and operate the rail link.
The terms of the contract for haulage of Minemakers’ freight will be a key aspect of proving the financial viability of the Wonarah rail corridor.
The negotiation process will aim to strike an appropriate balance between suffi cient freight revenue to justify construction of the railway by ATEC and for signifi cant savings to Minemakers with potential to satisfy its future production expansion aims.