Perth-based Yilgarn Infrastructure Ltd will conduct a feasibility study on a proposed multi-user rail project in the Mid-West, after signing a memorandum of understanding with the China Overseas Engineering Corporation, the company announced today.
Perth-based Yilgarn Infrastructure Ltd will conduct a feasibility study on a proposed multi-user rail project in the Mid-West, after signing a memorandum of understanding with the China Overseas Engineering Corporation, the company announced today.
CHINESE PARTNER SIGNS UP FOR DEFINITIVE OAKAJEE RAIL INFRASTRUCTURE STUDY
Yilgarn Infrastructure Limited (Yilgarn) has secured an agreement with one of the world's top engineering contractors to undertake the definitive feasibility study of its proposed multi-user railway in Western Australia's Mid West Region.
Executive Chairman Dr John Saunders announced today that the China Overseas Engineering Corporation (COVEC, a member of the China Railway Engineering Corporation CREC) had signed a binding Memorandum of Understanding with Yilgarn to carry out the rail component of the Stage 2 work.
He expected a similar agreement to be signed in the coming weeks with a Chinese partner to undertake the definitive feasibility study on the proposed new port at Oakajee, 25km north of Geraldton. Yilgarn's Project Manager, Australian company WorleyParsons Services Pty Ltd, has completed the detailed Owners' Requirements and is overseeing the detailed studies for the Project.
The MOU follows the Stage One 15-month pre-feasibility studies on the proposed railway and deepwater port.
Dr Saunders said the signing of the agreement was another important milestone for Yilgarn as a proponent of the estimated $2 billion independently owned and operated Oakajee port and rail project, infrastructure vital to the growth of the mines of the Mid-West region.
"These definitive studies for the railway will investigate in detail the engineering and technical design, corridor selection, supply chain modelling, geotechnical and constructability assessments, capital costs and the costs of operating and maintaining the infrastructure. They also will study environmental impacts and initiate the approvals that are required," Dr Saunders said.
"This extremely detailed level of work is needed to contract what the pre-feasibility studies have shown - that Yilgarn's independent plan for a rail network aligned to service all Mid-West mines with guaranteed third-party access is commercially attractive to each mine and the best option to ensure the region has an opportunity to realise its huge potential."
The definitive studies also are a requirement by banks for debt finance and will be necessary to secure equity funding from Australian and Chinese investors. Yilgarn plans to list on the Australian Stock Exchange later this year.
Dr Saunders said the Yilgarn Rail Project would connect the new Oakajee port with iron ore mines and other resources in the Mid West via about a 100km trunk network of heavy railway from Oakajee to a hub at Mullewa and 365km from Mullewa to Jack Hills via Weld Range. Yilgarn also is looking at a rail option to the south east of Mullewa. The railway would be designed to international standards with a multipurpose function to provide for the transport of other products as they came online.
