Emerging Australian iron ore producer Gindalbie Metals Limited has announced the signing of an agreement for the provision of long-term bulk rail haulage services for its Karara iron ore project - an equal share joint venture with Chinese steel and iron ore company Ansteel - in Western Australia by Australia's government-owned transport company QR Freight (QRF).
Under the agreement signed by the joint venture company Karara Mining Limited (KML), QRF has been appointed as the exclusive provider of rail operations for the initial tonnages of magnetite concentrate (8 million mt per year) and direct shipping ore (up to 3 million mt per year) to be produced by the Karara project.
The sides are expected to sign another agreement soon covering the next 10 years. This long-term agreement will have options for future growth and expansion tonnages to accommodate the potential growth of the Karara project to a production capacity of 30 million per year.
Construction commenced last year at Karara, which is located 500 km northeast of Perth and 225 km east of Geraldton, and is progressing on schedule with approximately 200 personnel currently on site for building of a railway to the port of Geraldton.
Karara will initially generate around AU$1 billion in annual export revenues, building to AU$3 billion annually, Gindalbie Metals says.