MinRes committed to ore skyrail idea
Mineral Resources is still determined to build a skyrail to service to stranded iron ore deposits in the Pilbara despite the recent iron ore price rout.
Speaking on the sidelines of the launch of Mineral Resources’ indigenous traineeship program this morning, MinRes managing director Chris Ellison said the company was still working on detailed design plans for the project, with construction of a test track in China on target for July.
MinRes wants to build a 330km above-ground rail line in the Pilbara to service its Iron Valley project and to potentially open up other Pilbara deposits owned by junior explorers that currently have no access to infrastructure.
Mr Ellison said the project still made sense in the current environment, as it could potentially cut up to $25 a tonne from haulage and shipping costs for smaller iron ore miners.
MinRes first floated plans for the system in February, described as halfway between a conveyor belt and a traditional rail line. It would run on steel substructure driven into ground, reducing the need for expensive earthworks required for a traditional heavy rail system.
MinRes has suggested a line to Iron Valley could be built for $700 to $800 million.
He said MinRes was also looking at applications for its system in coal and grain, flagging its potential use as a replacement for third tier grain lines in the Mid West.
Mr Ellison was speaking at the launch of the company’s Tjinanging indigenous traineeship scheme, which will initially result in eight trainees being taken in across the company’s WA operations.
Mr Ellison said the traineeship program was part of a renewed focus by MinRes on providing job opportunities for indigenous workers.
He said the MinRes had not set a hard target for indigenous employees at its WA operations, but hoped that up to 10 per cent of its workforce could be made up of indigenous workers over the next 18 months.
MinRes shares were off 10 cents, or 1.45 per cent, to $6.82 shortly before the close of trade.
