MidWest shifts iron ore haulage to rail

<p>The cost of hauling Midwest Corporation’s iron ore by rail from next year would be on par with current road haulage, the company’s chief executive, Bryan Oliver, said this week.</p> <p>Midwest will buy 64 rail wagons from China South Locomotive and Rolling Stock Industry Group Corporation as part of a plan to move its 1m tonnes of iron ore exports off the road. </p> <p>The company’s Koolanooka mine, 200 km east of Geraldton in Western Australia, is one of only two operating iron ore mines in the region.</p> <p>There are about six projects being planned among members of the Geraldton Iron Ore Alliance, with Gindalbie Metals already having committed to transporting the iron ore from its Karara mine by rail when it begins production in the third quarter of 2007.</p> <p>Mt Gibson has used rail to move up to 3m tonnes of product for the last two years.</p> <p>The shift to rail follows a directive from the Western Australian Government last year insisting that iron ore transport be moved off the road.</p> <p>The Government has powers to require mines within 100 km of a rail line to use rail instead of road.</p> <p>Mr Oliver said Midwest had spent several months planning how best to make the move, which WA infrastructure minister Alannah MacTiernan hopes will take about 100 trucks off the road each day.</p> <p>The Government assistance for junior miners is unlike that experienced by Fortescue Metals Group in the Pilbara region.</p> <p>Rio Tinto and BHP Billiton have rigorously defended their rail lines from third parties, fearing that up to $43bn of iron export revenue could be at risk. </p> <p>Fortescue has continued planning for its own port and rail operations, despite the setback of a Federal Government decision not to grant it access to existing rail lines.</p> <br />