Macarthur Minerals has entered a negotiation agreement with Australian company Aurizon to finalise a rail haulage contract for its Lake Giles Moonshine Magnetite Project.

Under the agreement, Aurizon will provide rail haulage services including the supply of rolling stock to transport iron ore from the Lake Giles project located in Western Australia’s Yilgarn region to the Port of Esperance.

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The latest development comes after Macarthur signed a binding life-of-mine offtake agreement last month with Glencore for the sale of iron ore to be produced from Lake Giles from the commencement of commercial production.

Aurizon’s rolling stock, including 325 wagons, was earlier used by other iron ore operators in Australia.

Macarthur Minerals executive chairman Cameron McCall said: “Macarthur is pleased to be working with Aurizon to advance its rail haulage requirements and is very encouraged by its availability of rolling stock for the project.

“Rail transport is an integral component in our supply chain and Macarthur and Aurizon have a common goal in expanding iron ore production in the Yilgarn region.”

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Macarthur and Aurizon hope that their partnership can benefit the economies of the local mining communities surrounding the Lake Giles project.

“Rail transport is an integral component in our supply chain and Macarthur and Aurizon have a common goal in expanding iron ore production in the Yilgarn region.”

Macarthur selected Aurizon as the preferred operator based on its supply chain experience, safety and operating capability.

Aurizon Iron Ore general manager Anna Dartnell said: “We look forward to being part of this opportunity with Macarthur Minerals, growing regional Australia by delivering bulk commodities to the world.”

Macarthur Minerals has so far invested more than A$61m ($43.3m) on its wholly owned iron ore projects that cover about 62km² area in the Yilgarn region.