Brockman delays Marillana iron ore project

<p>Western Australian iron ore company Brockman Resources has delayed the development of its Marillana iron ore project in the Pilbara region of Western Australia, citing uncertainly and volatility in global equity markets and delays in securing binding rail and port access agreements.</p> <p>The company had planned to start a 2m tonne per annum operation at Marillana, 100 km northwest of Newman, by late 2009 before increasing its production capacity to between 15m to 25m tonnes per year by 2012.</p> <p>Brockman Resources managing director Wayne Richards said the company would scrap the initial development of Marillana and focus future cash expenditure on the development of a long-term sustainable project capable of delivering strong long-term returns.</p> <p>Mr Richards said the company would also review new growth opportunities both within and outside the organisation.</p> <p>&#8220After taking into consideration the impact of the global financial crisis on the development and marketing strategies of the emerging iron ore sector, the Brockman board has concluded that the most prudent strategy for the company is to process the Marillana project as a long-life, world-scale operation supported by sustainable rail and port infrastructure and off-take agreements,&#8221 he said.</p> <p>Mr Richards said the company had been unable to formalise an agreement in relation to port and rail infrastructure access in a suitable timeframe for the initial development, despite discussions over the past year with the State Government, the Port Hedland Port Authority and third party infrastructure.</p> <br />