QR National finalises $900 million rail haulage contracts with Western Australian iron ore miner Gindalbie Metals
November 18, 2011
QR National is making good its plans to expand in Western Australia.
The company’s rail haulage contract with Ginalbie Metal’s Karara Mining iron ore project will bring in revenues of approximately $900 million.
Starting January 2012, QR National Freight’s subsidiary Australia Western Railroad (AWR) will transport up to 10 million tonnes per annum (mtpa) of magnetite concentrate and hematite direct shipping ore (DSO) over a period of 10 years.
Under this agreement, QR National Freight will provide a fleet of new locomotives and wagons and upgraded administration and maintenance facilities at the Narngulu East Facility near Geraldton.
A 15-year rail access agreement with rail track owner Brookfield Rail has also been finalised.
Brookfield Rail (formerly Westnet Rail), which operates the existing 200km narrow gauge rail line running from Morawa to Geraldton will undertake a major upgrade of the existing rail line, to provide capacity for Karara’s Stage 1 production and its anticipated Stage 2 expansion to 16Mtpa.
This includes rail upgrade works including installation of dual gauge sleepers similar to those being installed on Karara’s 85km spur line.
Brookfield Rail has already commenced the rail upgrade, with ongoing work scheduled to facilitate the required train paths to support initial ramp-up tonnages of ore from the Karara Project once commissioning commences in 2012.
The rail upgrades are expected to be progressed in line with Karara’s ramp-up schedule, with full capacity reached in December 2012.
Gindalbie Managing Director, Tim Netscher says the completion of the above and below rail contracts put the finishing touches to the end-to-end infrastructure solution for the Karara Project.
“With construction of the 85km spur line at an advanced stage, upgrades to the Brookfield Rail network underway, stringing of the powerline in progress, construction of the water pipeline complete and the Geraldton Port facilities taking shape, this is very exciting time for Karara as the key elements of our infrastructure solution enter into the final stages of construction,” he says.