Australian rail freight company Aurizon has signed an agreement with Northern Iron to transport magnetite from the Warrego Rehabilitation Project to Darwin Port.
The agreement will see 1.2 million tonnes of magnetite transported annually from Tennant Creek to Darwin Port, increasing exports, supporting mines, and boosting the economy.
“We acknowledge Aurizon as a key enabling partner for the Warrego Rehabilitation Project as part of Northern Iron’s strategy to retain investment in the Territory and support companies that are contributing to the growth of the region,” Northern Iron Managing Director Rob Morrow said.
“This strategic partnership will provide the critical logistic capabilities needed to get our magnetite product to market where steel producers create a higher quality steal product using less ore and producing less emissions and waste by-products,” Morrow stated.
To facilitate this, a railway siding and stockpile hardstand will be built 18 kilometres north of Tennant Creek, marking the first such development in the Northern Territory in two decades.
“This is the first major contract won by Aurizon in the Northern Territory since acquiring the rail and infrastructure business in 2022. It builds on a number of contract renewals by Aurizon over the past year to support the growth of our existing customers along the Adelaide to Darwin corridor,” Aurizon General Manager Bulk Central Matt Jones said.
“Aurizon’s major investment in central Australia recognises the strategic value and potential of the business in serving rapidly-growing markets for resources, agribusiness, renewable energy and general freight,” he added.
According to the Northern Territory Government, the initiative is critical in increasing rail efficiency and expanding capacity for varied freight transport to improve environmental outcomes and lower transport-related carbon emissions.
Magnetite freight is set to begin its 1,000-kilometer journey to Darwin Port in March 2024.
The project aligns with the Northern Territory Government’s $440 million Regional Logistics Hubs project, which highlights the need for strategically positioned terminals, rail sidings, and warehousing structures along the Darwin-Tarcoola rail corridor.
“Like the Territory Governments Regional Logistics Hubs project, this deal will increase exports, boost the economy and reduce our carbon footprint,” Minister for Infrastructure, Planning & Logistics Eva Lawler said.
The agreement between Aurizon and Northern Iron, along with the Regional Logistics Hubs, will support the growth and management of initiatives in the resources, agriculture, renewable energy, and construction sectors, all of which are vital to achieving the NT Government’s target of a $40 billion economy by 2030.
“We look forward to supporting Northern Iron’s growth in coming years, as part of the broader expansion of the region’s resource base and in contributing to the NT Government’s goal of building a $40 billion economy by 2030,” Jones stated.
