THE BOURSE WHISPERER: Brockman Mining (ASX: BCK) has announced the completion of the first phase of an Alliance study, being conducted in conjunction with Aurizon Operations and Atlas Iron (ASX: AGO).
The study is evaluating a new, independent, multi-party railway to connect iron ore mines in the East Pilbara to Port Hedland.
Brockman said the Alliance study conclusions have demonstrated the merits of a new, standard-gauge railway in the East Pilbara, connected to dedicated port facilities at Port Hedland to deliver production from a number of operating and prospective miners, including Brockman and Atlas.
“The study has demonstrated the benefits of working with aligned parties to provide infrastructure solutions,” Brockman Australia chief executive officer Russell Tipper said in the company’s announcement to the Australian Securities Exchange.
The results have encouraged the parties involved to extend the existing Alliance Study Agreement to 1 July 2013, to examine the East Pilbara rail development and the proposed North West Infrastructure port development in South West Creek in Port Hedland, as a single integrated infrastructure project.
The study has acknowledged synergies the companies involved can achieve across the supply chain, which has formed the basis for the next stage of evaluation, being an integrated rail and port Pre-feasibility Study.
The Alliance participants are aiming to agree the scope and timing of a pre-feasibility study for the combined port/rail project.