Australia-based Atlas Iron Limited has reached an agreement with QR National, a local coal transport company to conduct a feasibility study for the 3,5 billion A $ railway project in Western Australia's Pilbara region.
The railway line will connect Atlas and other companies' iron ore reserves to Port Hedland in eastern and southeastern Pilbara. The feasibility study is expected to be completed by the end of the 2012 calendar year. The first transport is scheduled for 2015.
Atlas will use its rail transport to increase its annual output from 15 million mt to 46 million mt. Thus, the company will fully utilize the Port Hedland port capacity.