<span class="" id="parent-fieldname-description"> American Metals & Coal International (AMCI) and South Koreaâs POSCO have joined Chinese steelmaker Baosteel in an infrastructure agreement with Aurizon as part of the West Pilbara Iron Ore Project. </span> <div>The project, which belongs to Baosteel and Aurizon following their joint takeover of Aquila Resources in July this year, includes the development of an iron ore railway in the Pilbara region of WA, which currently hosts railways belonging to BHP, Rio Tinto and Fortescue.<br /><br />Late last week Aurizon, the Queensland-based rail specialist, announced the finalisation of an Infrastructure Framework Agreement between AMCI, POSCO and Baosteel with Aurizon.<br /><br />Aurizon said the deal creates a pathway to constructing world-class rail and port infrastructure for a new iron ore province in the Pilbara, with exports targeted for 2017/18.<br /><br />The first stage of the project involves development of a new deep-water port at Anketell and a 280km railway to support at least 40mtpa throughput from eight mining areas, Aurizon outlined.<br /><br />Development will also be made with the potential for future expansion in mind, the company said. <br /><br />ACMI has been involved with the project since Aquila first began to develop it, around 10 years ago. But stalls in that development – which led to Baosteel and Aurizon’s eventual takeover bid – frustrated the American energy and resources business.<br /><br />Hans Mende, president of ACMI, said the company was “pleased past issues are behind us,” however.<br /><br />“The agreement brings together parties that can genuinely underpin delivery of one of the most exciting resource projects on the globe,” Mende said.<br /><br />“We’re committed to making this greenfield iron ore project a commercial reality and helping establish a new phase of economic investment in Australia.”<br /><br />Kimok Yun, senior vice president of raw materials at POSCO, said the South Korean conglomerate (which has the rail contract for Hancock/GVK’s Queensland development) considers the delivery of rail and port infrastructure as a key component of the Pilbara development.<br /><br />“We are pleased to discuss the development of the rail and port infrastructure with such capable companies,” he said. “All four parties are heading in the same direction and we look forward to working together to progress the project.”<br /><br />The union to deliver the infrastructure is a complex one.<br /><br />Known as the Australian Premium Iron Joint Venture (APIJV), it is a 50/50 joint venture between Aquila and AMCI (IO).<br /><br />Aquila is 85%-owned by Baosteel, and 15%-owned by Aurizon.<br /><br />AMCI (IO) is 51%-owned by AMCI, and 49%-owned by POSCO.<br /><br />“Aurizon is delighted to have secured the agreement of Baosteel, AMCI and POSCO in the IFA to support the infrastructure requirements for the West Pilbara project,” Aurizon managing director Lance Hockridge said.<br /><br />“These companies are global leaders in the resources and the steel sector, bringing the demand and scale required to sustain such a major infrastructure investment.<br /><br />“Aurizon’s job now is to deliver a commercially-attractive and scalable infrastructure solution for Baosteel, AMCI and POSCO.<br /><br />“We know that the creation of world-class rail and port export infrastructure is critical to driving globally-competitive exports and economic wealth for the country.”<br /><br />Under the agreement, Baosteel, AMCI and POSCO have provided Aurizon with a period of exclusivity to develop an infrastructure solution for the iron ore project.
