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Regulator allows Brockman to strike a rail deal

14th August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore junior Brockman Mining has been given approval by the Economic Regulation Authority (ERA) of Western Australia, to start negotiations with Foretescue subsidiary The Pilbara Infrastructure (TPI) on rail access in Western Australia.

TPI turned to the ERA in May this year, as it considered that Brockman’s access proposal would limit other third-parties’ access to the line.

Under Section 10(1) of the Railways (Access) Code, the authority’s approval is required in order for negotiations to proceed if the railway owner considers that an access proposal will involve the provision of access to railway infrastructure to an extent that may, in effect, preclude other entities from access to that infrastructure.

The ERA in June called for submissions on the Brockman proposal, receiving six responses.

The authority has now given its approval for the rail access negotiations to proceed, and the floor-to-ceiling determination from the ERA was expected within 30 days.

Brockman said on Wednesday that it was also preparing a submission to TPI on the company’s managerial and financial capability, and the availability of spare capacity required by TPI.

Brockman was seeking access rights to allow the miner to haul some 20-million tonnes a year of hematite iron-ore product from its Marillana project to Port Hedland, for up to 20 years, starting in 2016.

TPI owner Fortescue has previously said that there was no surplus capacity on the rail infrastructure to accommodate Brockman.

Edited by Creamer Media Reporter

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