WestNet Rail and Karara Mining Limited (KML) have signed a long-term rail access agreement for the Karara Iron Ore Project.

 

The 15 year agreement, due to commence in 2012, will see WestNet Rail providing access to the rail network, rail infrastructure support services and undertake an approximate $450 million upgrade.

 

WestNet Rail is upgrading the existing rail infrastructure from Morawa to Geraldton, providing capacity for Karara’s Stage One production of 10mtpa and the anticipated Stage Two expansion to 16mtpa.

 

Once completed, iron ore will be railed from the Karara Iron Ore Project site along a new 85km spur line to Tilley Siding near Morawa, where it will connect to WestNet Rail’s upgraded railway and continue through to Geraldton Port.

 

Paul Larsen, WestNet Rail’s Chief Executive Officer said the works to upgrade the 200km of rail from Morawa to Geraldton had already commenced, with WestNet Rail and its owners Brookfield Infrastructure Partners focussed on delivering a successful project for its important new customer.

 

“WestNet Rail looks forward to working in partnership with KML to help bring the Karara Iron Ore Project to market and this significant infrastructure upgrade provides a platform for the launching of the Midwest iron ore province.