ARC INFRASTRUCTURE has signed a deal to transport 1.2 million tonnes of iron ore by train per annum with Gold Valley Iron Ore from its Wiluna West Iron Ore Project to the Port of Esperance.
Starting on 30 September it will run three return train paths a week.
Southern Ports CEO Keith Wilks said it was the first time that iron ore assets in Esperance would be used for two iron ore exporters at the same time.
Mr Wilks said the iron ore circuit at Esperance was a single user circuit either by Cliffs originally and then Mineral Resources Limited.
“What we did a few years ago when we did a new deal with MRL, we reserved the right to take back half of one of the larger sheds to put a second player in there. And so when Gold Valley came along and put a proposal to us we were able to work through that and take the shed back from MRL.
Perth-based iron ore miner Gold Valley is involved in exploration, development and production of iron ore assets in Western Australia and the Northern Territory.
Arc Infrastructure General Manager Commercial Nathan Speed said the agreement reflected Arc’s ongoing commitment to increasing freight on rail and was a great boost for the region.
“The deal with Gold Valley is a significant vote of confidence in the Yilgarn iron ore region and we are thrilled to secure a new customer who has both an existing operation and significant growth aspirations,” Mr Speed said.
“We’re also pleased from a community perspective, as we know that more freight moved on rail translates to safer and less congested roads and lower emissions.”
Gold Valley Chief Executive Officer Scott Meacock said the agreement was a significant milestone.
“The move onto rail represents a significant step in the growth of the Gold Valley Group and toward securing the long-term resilience of the Wiluna West Iron Ore Project operations,” Mr Meacock said.
“We are excited by this first step and the opportunity to expand our presence in the Wiluna to Esperance corridor by working closely with all stakeholders, including Arc Infrastructure.”
