Brockman enters MOU with Flinders

Iron ore juniors challenging Fortescue over third-party rail access enter deal to pool infrastructure, transportation.

Brockman Mining Ltd has entered into a non-binding memorandum of understanding (MOU) with Flinders Mines to pool infrastructure and transportation costs for its iron ore projects in east Pilbara.

The two companies will form a working group to discuss the sharing of contractor costs and other funding issues (see Tim Treadgold's Is it iron curtains for small producers?).

Fortescue Metals Group Ltd chief executive officer Nev Power has warned juniors through Western Australia’s Economic Regulation Authority (ERA). 

Their MOU comes after Fortescue chief Nev Power warned the juniors to negotiate with him over access instead of using regulatory channels

Brockman owns the Ophthalmia and Marillana iron ore project tenements in the East Pilbara and Flinders owns the Pilbara Iron Ore Project nearby.

The MOU statement comes a day after Brockman said it had appointed rail operator Aurizon to supply infrastructure to its Marillana and Ophthalmia projects, without giving a dollar value for the agreement.