Rail and Port Infrastructure
Rail

The Project requires rail infrastructure to haul products to Port Hedland for export. Brockman's Marillana Project, at up to 20 Mtpa for over 20 years, is considered a corner stone project for any independent Pilbara railway development. Brockman is currently pursuing two potential rail solutions for the Marillana Project:

1. Brockman own stand-alone railway (Brockman's Rail) to connect Brockman's Marillana and later Ophthalmia projects to Port Hedland. Brockman's Rail is predicated on a standard gauge design, 26-tonne axle load, and incorporating an Ausbeam Track System (a ballast-less track system with continous rail support).; and
2. Negotiated access to The Pilbara Infrastructure's (TPI's) existing regulated railway, for the Marillana Project, with potential to service the Ophthalmia Project in future, to connect to Port Hedland.

Brockman's Rail

Brockman has commissioned Engenium Pty Ltd (Engenium), a leading Perth engineering company, for the Company's own railway (Brockman's Rail). Brockman's Rail is predicated on a standard gauge design, 26-tonne axle load, and incorporating an Ausbeam Track System (a ballast-less track system with continuous rail support). The wagon design specification is based on current bottom dump wagons utilised in Western Australia. The design and track structure is expected to significantly reduce capital cost when compared with traditional Pilbara "heavy-haul" railway systems.

The study, which was completed in June 2016, demonstrates strong commercial merits for Brockman's Rail to support an initial rail capacity of 30Mtpa to a designated berth in Port Hedland, with the ability to be expanded to 50Mtpa for other junior miners. On the back of such an encouraging study result, Brockman will progress with a Pre-Feasibility Study and continue discussions with the relevant Western Australian Government departments on requirements for Brockman's Rail and its facilitating port.

TPI Rail Access

Brockman made an application seeking access to TPI's below-rail infrastructure in May 2013, under the Western Australian Railways (Access) Code 2000 (Code), to allow it to haul up to 20 Mtpa of hematite iron ore product from Marillana to Port Hedland, where NWI has a capacity allocation of 50 Mtpa for iron ore export from South West Creek in the Inner Harbour, for a term of 20 years.

Brockman is continuing to prepare submissions to satisfy TPI of Brockman's managerial and financial capability (section 14 of the Code) and the availability of capacity (sections 15 of the Code) amidst various legal challenges from TPI to validity of Brockman's application under the Code. None of these challenges can be upheld under the Western Australian court.

Port

Brockman continues to work with Pilbara Port Authority (PPA) for a port arrangement in the South West Creek of Port Hedland underpin by a rail solution into Port Hedland.