Cockatoo Coal (ASX: COK) has finalised an agreement with QR Network Pty Ltd to proceed with Stage 1 of the Wiggins Island Rail project near Gladstone in Queensland.
The deal with QR Network was struck with seven other coal companies including Xstrata Coal (LON: XTA), Aquila Resources (ASX: AQA), Bandanna Energy (ASX: BND), Caledon Resources (LON: CDN), Northern Energy (ASX: NEC), Yancoal, and Wesfarmers Curragh to build the $900 million rail line to the new Stage 1 Wiggins Island Coal Export Terminal (WICET).
Construction is due to commence early next year, with first railings forecast for mid 2014. The eight coal producers have committed to a total of 27 million tonnes per annum capacity for the Stage 1 development of WICET.
All of the remaining infrastructure will be completed by March 2015.
The rail project is designed to support the initial 27 million tonnes of coal that will pass through the Wiggins Island terminal at Gladstone each year.
The Wiggins Island Rail project includes the construction of a new 13 kilometre balloon loop near Gladstone, and upgrades to sections of various existing lines.
These lines include the Moura System, which services the Cockatoo’s operating Baralaba coal mine and the Baralaba expansion project. The Baralaba expansion project is being developed to meet the company’s 3.0 million tonne per annum WICET Stage 1 allocation.
The company expects coal shipments through Stage 1 of WICET to commence in 2014.
Cockatoo Coal said the Wiggins Island Rail project will align with both the time frames for the commissioning of WICET and the development of related WICET Stage 1 mining projects, including the Baralaba expansion project.
In July Cockatoo increased the total of Measured and Indicated JORC Resources in the open cut production areas of the Baralaba Mine project by 148% to 13.1 million tonnes.
The Baralaba mine project is within the company's Bowen Basin projects. The upgrade increased all classifications of JORC Resources in the Bowen projects by 4% to 164.9 million tonnes.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/19290/cockatoo-coal-signs-wiggins-island-rail-agreement-with-qr-network-19290.html
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