Ten Year Deal To Freight Ore To Geraldton
Queensland Rail is to transport iron ore from Western Australian miner Gindalbie Metals's $1.8 billion Karara project to Geraldton port.
The rail operator, which moved into Western Australia in 2006, will announce on Monday that it has signed a heads of agreement with Gindalbie for a 10-year deal for 8 million tonnes of concentrate and 3 million tonnes a year of direct shipping ore with an option to take the whole of the 30 million tonnes a year that Gindalbie expects to produce at Karara.
The Karara project is a joint venture between Gindalbie and the Chinese steelmakers Ansteel. The first iron ore is expected to be produced next year.
"This is potentially one of the largest individual long-term contracts which will be awarded for the Karara Project, with a value of several hundreds of million dollars over the initial 10-year period," Gindalbie managing director Garret Dixon said.
Queensland Rail is expected to be privatised later this year.
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