Iron ore firms back Govt plan for new mid-west berth

Mid-west iron ore companies have welcomed the Western Australian Government’s commitment to complete a new berth at the Geraldton port by the end of the year.

Berth five is expected to boost iron ore shipment capacity out of the port from almost five million tonnes to about 15 million tonnes per year.

Mining companies are currently using a combined minerals and iron ore loading facility.

The Minister for Planning and Infrastructure, Alannah MacTiernan, says the Government needs more commitment from mining companies before additional infrastructure is built at the port.

“[We] are ready to put in place infrastructure, but it does have to be supported by a sound business plan, and that sound business planning does require that the miners are really ready and able to commit to reasonable levels of take or pay contracts,” she said.

Mining companies in the Geraldton Iron Ore Alliance want infrastructure such as a better rail services and more storage at the port.

The managing director of Mount Gibson Iron, Luke Tonkin, says mining companies are negotiating with the port authority about funding to build the infrastructure.

“I think the important thing is that the discussions come to some sort of landing as to what’s required and what capacity is required to feed the berth five facility, and I hope that’s done quickly,” he said.

Source: au.biz.yahoo.com