QR NATIONAL will be investing in excess of $65 million in its operations to bring iron ore from Cliffs Natural Resources’ mine at Koolyanobbing to the port at Esperance.
QR National, through its subsidiary ARG (Australian Railroad Group), has ordered six new locomotives worth $35 million and 227 rail wagons worth another $30 million from United Group (UGL).
QR National currently carries iron ore from Cliffs Natural Resources' Koolyanobbing mine 575 kilometres to Esperance Ports Sea and Land (EPSL).
A QR National spokesperson said there would be no change to the number or frequency of train movements previously approved, since longer trains will be used - 159 wagons, rather than 126 wagons currently.
The longer trains will carry nominally 11,500 tonnes as opposed to the current 9,000 tonnes.
QR National managing director and chief executive officer, Lance Hockridge said iron ore was a strong growth area for the company as customers in Western Australia expanded or opened mines.
“We are well placed to grow, as we supply iron ore export markets that are benefiting from strong Asian demand, particularly from China and India.”
The new locomotives are scheduled to be delivered in the second half of 2011.
Cliffs’ spokesperson, Michelle de Souza said, “With the assistance of EPSL and other key stakeholders, Cliffs Asia Pacific Iron Ore is now proceeding with the execution phase of its $320 million proposal to increase its iron ore production from its Koolyanobbing mining operations from 8.8 Mtpa.
“There will be no significant changes to the existing infrastructure and no new infrastructure required at the Port, since sufficient capacity and capability exists to cope with the increased throughput.”
Ms de Souza also said there would be no change to the total number of vessels previously approved to export from the Port, as larger vessels would be used.
“The increased export of iron ore provides an economic return to Cliffs, EPSL and the broader community, including that of Esperance,” she said.
“Works to upgrade rail infrastructure at Esperance will create employment opportunities for the construction period and train maintenance, thereafter.
“Continued use of the Esperance Port for the export of iron ore also provides longer-term security of local employment in the Yilgarn and Esperance regions during the life of the Koolyanobbing mining operations.”
source: The Esperance Express
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