Genesis Minerals managing director Raleigh Finlayson has spent the best part of 12 months winning over a queue of stakeholders to have a stretch of railway in Leonora shortened for his new Tower Hill mine.
Mr Finlayson told a Diggers & Dealers press pack that the State Government had been supportive “the whole way through” the process, which he said was tracking ahead of schedule, and that the plan would “start to come together in the next six months”.
“I can’t talk to much about it but there’s a natural benefit to every rail user, (and) certainly a massive benefit to the State in the area,” he said.
The Tower Hill deposit in Leonora has been pegged a key part of the miner’s longer-term growth plans to become a 400,000 ounce per anum-producer, but has an 8km stretch of railway running across it that will need to be removed before mining can start in 2028 as planned.
Mr Finlayson said much of his focus had been talking to the different users of the rail line, which is operated on behalf of the State Government by Arc Infrastructure – an entity ultimately owned by Brookfield Infrastructure Partners.
Aurizon and Watco operate services on behalf of Glencore and Lynas Rare Earths, and formerly BHP Nickel West.
“We’re actually just reducing the line,” Mr Finlayson assured on Tuesday. “There’s actually no new rail to build.”
The Leonora terminal is the last stop on the line with the next closest station at Malcolm.
“They’re (Aurizon) are going to relocate over to Malcolm, which is actually preferential for them because all their clients are over to the east” he said.
Presenting at Diggers on his behalf chief operating officer Matthew Nixon said the rail project had been a “significant focus” for his boss over the past year.
“With regard to the rail line this has been a significant focus from our managing director, Raleigh Finlayson over the past 12 months, probably accounting for around 70 per cent of his time,” Mr Nixon told the crowd.
“We continue to have excellent engagement with all rail users and are well-advanced relative to the timeline.”
Mr Finlayson has previously said the Leonora community is “bullish” on the prospect of a new mine, particualrly against the backdrop closures at BHP Nickel West and Wyloo Metals.
The State Government told The West Australian in June Mr Finlayson’s mission to remove kilometres of the Leonora railway to make way for a new gold mine “has merit” on the grounds it would create more jobs.
And after what Mr Finlayson said was a busy period of “counter-cyclical M&A” Genesis was focused on organic growth by ramping up its famed underground Gwalia mine and nearby Admiral open pit and Ulysses underground.
Genesis spent $7.5 million buying Leonora Lodge earlier this year as a way of “future-proofing” accommodation for construction workers who would be set to start work after a final investment call is made on Tower Hill in the next few years.
Genesis is also working towards a mining agreement with local Traditional Owners, the Darlot.