Despite Aurizon delaying a new Pilbara iron ore railway, the WA state government has begun to acquire $20m-worth of land at the project’s export site, Anketell Port.
Following speculation that it would stall plans to build a 430km rail line in the Pilbara, Aurizon announced a revised set of dates for the planning phase of the project earlier this month.
Aurizon is the rail proponent of a prospective 40 million tonne per annum iron ore mining and export venture, since it acquired Aquila Resources in a joint bid with Chinese steelmaker Baosteel in 2014.
Together with mining partners POSCO and AMCI, the companies aim to develop the iron ore project to export at the currently undeveloped Anketell Port.
But since the partners took over Aquila in 2014, the iron ore price has dropped almost 50%.
Aurizon’s delay move earlier this month was in response to the price drop. Major shareholder Perpetual reportedly urged the rail operator not just to delay the project, but to shelve it entirely.
Nonetheless, premier Colin Barnett announced the government would buy over 4300ha of land covering the planned Anketell site, on Wednesday, May 27.
The land is being acquired under a $20 million native title agreement with the local Ngarluma people.
“The state government is ready to proceed with the next step of the agreement by acquiring this land, providing further certainty to port proponents and interested parties,” Barnett said.
“Conditions are very challenging in the iron ore market at the moment, but Aurizon and its partners remain committed to progressing the initial planning and study phases for the important project.”
Lands minister Terry Redman said the port is intended to unlock the potential of the West Pilbara, by providing port space for new and emerging mining companies.
“The development of the Anketell Port will significantly strengthen Western Australia’s position in global energy and resource markets by providing world-class project ready infrastructure and serviced land with capacity to meet demand from various markets,” he said.
“Acquiring the land for Anketell Port is a significant step for the Government’s plans to provide valuable port space for small and mid-sized mining companies.”
Anketell is planned to be a multi-user facility capable of exporting 350 million tonnes of iron ore each year.