ago up $200m in value since corunna downs repo, page-4

Hi watso......they keep coming......


Pilbara rail talks go ahead

Peter Kerr and Nick Evans, The West Australian June 4, 2013, 5:16 am

The State Government will press ahead with negotiations over a fourth major iron ore rail network for the Pilbara, despite uncertainty over whether separate deals between emerging miners will scuttle the $4 billion-plus project.

Sources close to the talks between Aurizon and the WA Government said both parties were continuing to draft a State Agreement for the rail corridor for the vital West Pilbara infrastructure.

"They need to keep all options open, because no one knows where this (rail access in the Pilbara) will end up," the source said.

The determination is despite growing doubts about the viability of the project, given falling iron ore prices and foundation customers Brockman Mining and Atlas Iron seeking alternative paths to port for their ore.

While Atlas has been quiet on the progress of negotiations, speculation continues to mount that the mid-tier miner is on the cusp of inking a deal with Fortescue Metals Group to use its rail line.

Atlas has previously confirmed it is in talks with multiple parties in a bid to reduce overinvestment in the region's rail lines, including Gina Rinehart's Roy Hill project, potentially in return for the use of some of Atlas' berth space in Port Hedland.

Industry sources say Fortescue could also be keen to strike a marketing deal for Atlas, potentially allowing its ore to be blended into the Fortescue product.