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MINERAL exploration company Archer has taken a big step towards expanding infrastructure at the Leigh Creek mine site to extract magnesite from the area.
Archer Exploration Limited and Bowmans signed a heads of agreement recently to jointly develop rail infrastructure at Leigh Creek supporting the magnesite project and a possible Bowmans Leigh Creek Intermodal Facility.
Bowmans is a joint venture between Toll Group and Balco and Australian Grain Technologies.
Archer Chairman Greg English said Archer and Bowmans will work together to assess the feasibility of developing and sharing of rail infrastructure at Leigh Creek under the agreement.
“Archer is pleased to have signed the agreement with Bowmans and is looking forward to working together to identify a shared infrastructure solution,” Mr English said.
“The work with Bowmans will enable Archer to finalise plans and costs for the ore rail solution and provide Archer with the information it needs to reach a decision on the best ore transport solution for Archer’s Leigh Creek Magnesite Project”.
Archer’s Leigh Creek Magnesite Project is located about 10km north-west of the Leigh Creek coalfield and the company is considering both rail and road transport solutions for the transport of magnesite ore from Leigh Creek.
The proposed shared rail facility would be located adjacent to the existing rail loop at the Leigh Creek coalfield.
The agreement between Archer and Bowmans is designed to enhance project economics and unlock synergies between Archer’s Leigh Creek Magnesite Project and Bowmans’ proposed Leigh Creek Intermodal Facility.
This article first appeared on www.transcontinental.com.au
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