Iluka mineral sands freight train commences trial operation

Friday, 18 November 2011

Iluka Resources Limited today commenced trial mineral sands trains from Hopetoun in northwest Victoria to Iluka's Hamilton Mineral Separation Plant.

Heavy mineral concentrate from the Ouyen area will now go by road to the Hopetoun railhead and then be carried 300 kilometres on the standard gauge rail line to Hamilton. This new rail operation will be more efficient by removing the need for B Double trucks to carry the mineral sands all the way to Hamilton.

As many as 20,000 truck movements a year may be cut from the Henty Highway with this alternative, reducing road wear and tear and improving local amenity, particularly in rural cities and towns such as Hopetoun, Warracknabeal, Horsham and Hamilton.

The State Government's joint funding with Iluka will lower private sector costs and encourage investment and resultant jobs in country Victoria.

This $9 million Iluka Resources rail freight project involves Iluka providing $5 million and the Victorian Government $4 million, the latter largely through Regional Development Victoria.. The project consists of a rail loading facility at Hopetoun, together with rail sidings and an unloading facility at Iluka's Hamilton Mineral Separation Plant.

Iluka Resources Limited processes heavy mineral concentrate at the Hamilton site of which 200,000 to 250,000 tonnes is exported primarily through the Port of Portland every year.

The Victorian Government is committed to growing freight on rail in Victoria and providing more efficient access to ports with the assistance of rail operators such as El Zorro, which is running Iluka's mineral sands train.

Iluka's General Manager, Australian Operations, Mr Steve Wickham said that the rail freight project was another sign of Iluka's investment in Victoria.

The 10 day trial will allow Iluka to test optimal operational practices for full time operation when the train should run six days a week in each direction between Hopetoun and Hamilton.

The State Government is also working in partnership with Graincorp to reopen the Dimboola to Rainbow rail line to grain trains.