Archer studies shared rail solution for Leigh Creek project
JOHANNESBURG (miningweekly.com) – ASX-listed explorer Archer Exploration has signed a heads of agreement with Bowmans Intermodal to assess the feasibility of developing and sharing rail infrastructure at Leigh Creek, in South Australia.
Archer reported on Tuesday that the proposed shared rail facility would be located adjacent to the existing rail loop at the Leigh Creek coalfield.
The rail facility would benefit Archer’s Leigh Creek magnesite project, 20 km outside the Leigh Creek town, and a possible Bowmans Leigh Creek intermodal facility, which would offer the Cooper basin oil and gas industry a rail/road alternative solution between the mine and the town.
“The work with Bowmans and the previous cooperation agreement signed with Leigh Creek Energy will allow Archer to develop the Leigh Creek magnesite project in a more timely and cost effective way and meet the aggressive timelines we have set ourselves,” commented Archer chairperson Greg English.
Last month, Archer signed a memorandum of understanding with a local operating magnesite mine to accelerate the development of its Leigh Creek project. Archer and the unnamed party had agreed to work together to execute binding agreements for the long-term supply and mining of magnesite at Leigh Creek. At the time, the company reported that it was hoping to finalise and execute the supply agreement by the second quarter of 2016, along with agreements with mining contractors, magnesite processors and offtake customers, and to gain all government and regulatory approvals to develop the project.
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