Brockman seeks access to FMG’s rail

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Iron ore hopeful Brockman Resources is seeking access to Fortescue Metal Group’s (FMG) rail infrastructure in the Pilbara region of Western Australia.

The junior iron ore explorer has applied through the WA government to access more than 200km of rail lines controlled by The Pilbara Infrastructure (TPI).

Hong Kong-based Brockman Mining, which has exploration licenses in the Pilbara, is seeking access rights to allow it to haul up to 20 million tonnes per annum of hematite iron ore from Marillana to a proposed rail spur near Port Hedland for 20 years beginning in 2016.

Brockman Australia’s chief executive Russell Tipper says there will be spare capacity on TPI and the next phase of Pilbara development is likely to be characterised by partnerships.

“We are encouraged by numerous statements from FMG advocating its support and provision of third party access on its TPI rail system,” Mr Tipper said.

“If this is done on a commercial and genuine basis it will greatly support junior miners and create significant infrastructure synergies in the Pilbara.”

Brockman said it would continue to pursue an alliance with Aurizon and Atlas Iron for a study to build an independent rail line in the East Pilbara.

Proposed North West Infrastructure (NWI) facilities near Port Hedland would have a capacity of 50 million tonnes per annum for iron ore export from Port Hedland.

“We would need to connect the mine and the port to the TPI line with spur railway lines and run our own trains from the mine to the port and back,” Mr Tipper said.

“That would facilitate the development of Marillana.”

He said the WA government rail access process would help junior miners gain access to existing infrastructure and no other applications had been made.

Fortescue, which is working on a short-list of potential buyers for TPI, recently said it hopes to sell part of the rail and port infrastructure by mid-year.

Atlas Iron is understood to be the frontrunner to secure a stake in Fortescue’s prized heavy rail and port facilities, valued at more than $3 billion.

Brockman Mining has three businesses, including iron ore in Australia, copper in China and transport in Hong Kong.

Shares in the company were flat at 5.3 cents at 1208 AEST.