Australia-based Atlas Iron Limited has reached an agreement with local coal shipping company QR National to conduct a feasibility study for the $ 3,5 billion railway project in Pilbara, Western Australia.
The railway line will connect iron ore reserves belonging to Atlas and other companies to Port Hedland in eastern and southeast Pilbara. The feasibility study is expected to be completed by the end of the 2012 calendar year. The first shipment is planned for 2015.
Atlas will use its rail transport as part of its strategy to increase annual output from 15 million mt to 46 million mt. Thus, the company will take full advantage of Port Hedland port capacity.