Magnetite Mines Ltd (ASX:MGT) has secured the land access it needs for rail-side infrastructure development at Hillgrange, South Australia, 55 kilometres from the planned Razorback Iron Ore Project plant site.
The negotiation of an exclusive, binding land access agreement with a private landowner provides MGT with direct access to the existing Hillgrange rail siding, with some 5 kilometres of frontage to the rail corridor.
Australian Rail Track Corporation (ARTC), the rail network owner, has advised Magnetite Mines that there are no known impediments for the company’s proposed development of an exclusive-use rail siding and spur line infrastructure at the Hillgrange location.
Accessing rail link to ports
Preliminary internal assessments indicate that there is open-access rail capacity to support MGT’s proposed expansion case production rate of 10 million tonnes per annum from Hillgrange to selected Spencer Gulf ports and that further capacity is possible with additional passing loops.
ARTC is currently modelling rail capacities to confirm this assessment while the company has also engaged with Aurizon, Australia’s largest rail freight operator, to provide support for ‘above rail’ services (trains, including locomotives and iron ore wagons).
Aurizon has proposed cost-effective concentrate transport solutions to local ports at Whyalla and Port Pirie. The work it has done to date confirms the viability of rail haulage for the base-case project configuration and proposed 10 million tonnes per annum expansion case.
"A valuable feature"
“The availability of open access rail within 55 kilometres of Razorback is a valuable feature of the project," CEO Tim Dobson said.
“The planned infrastructure at the existing Hillgrange rail siding will be Razorback’s connection to global markets, enabling access to the national rail network for the delivery of our high-grade iron ore products to customers."
Environmental assessments underway
Baseline environmental assessments have also kicked off for the concentrate haulage corridor. Key field studies completed to date include flora and fauna surveys, groundwater sampling, noise logging and geotechnical conditions.
Further desktop reviews, including soil, surface water and air quality considerations, have been completed for the corresponding areas. To date, no matters of specific concern have been identified.
“Our relationships and agreements with local landowners and pastoralists are key to a successful outcome for the project and in this case, we are encouraged by the outcome achieved," Dobson added.
“A mutually beneficial and flexible land access agreement has been negotiated with the landowner at Hillgrange that will underpin a positive, long-term relationship for years to come.”