Talks drag but Raleigh Finlayson’s rail shifting plan for next Genesis Minerals mine gathers steam

Genesis Minerals’ mission to dismantle part of a Goldfields railway line and eventually gain access to the Tower Hill deposit has vaulted forward after two government approvals were secured in its favour.

But the Raleigh Finlayson-led miner is still yet to get stakeholders — which has included Lynas Rare Earths and Glencore — to sign up to the plan, with an agreement now anticipated before the end of this year.

In a statement to the Australian Securities Exchange on Tuesday, Genesis confirmed the Department of Mines, Petroleum and Exploration had given the all-clear for stage one of a proposed mining and closure plan for the open-pit, one million-ounce ore reserve site.

Developing Tower Hill has long been on the cards for Genesis and is currently subject to an expansion study, with further detail set to be released in the second half of next year. The plan is to start mining by 2028.

But there has been considerable stakeholder rallying on the company’s behalf to first clear the 8km of railway track that runs over the proposed mine.

Genesis made a key step forward last month when Arc Infrastructure — which operates and maintains WA rail on behalf of the State Government — secured approval to clear the existing track and build a new rail terminal.

However, that will still require approval from other rail users, with line services operated by Aurizon and Watco on behalf of Glencore and Lynas, to go ahead. It had been anticipated an agreement might have been pinned down by June.

“Agreements with rail users relating to shortening the rail line, as required for Stage 2, are expected to be completed by the end of this calendar year,” Genesis told the market on Tuesday.

Arc Infrastructure chief executive Stephanie Unwin said the Brookfield Corporation-owned operator was “pleased to be working collaboratively with Genesis Minerals and the State Government” on the project “requiring the shortening of the Leonora railway line”.

“Should the project proceed, Arc will construct replacement rail infrastructure to ensure we can continue to offer the same functionality to rail access seekers in the region, which would be lost through shortening the rail,” Ms Unwin told The West Australian.

“We look forward to continuing this work which will contribute to sustainable growth and development in the Goldfields region.”

Negotiations on the rail project come as the State Government progresses a push to potentially buy back the State’s railways from Arc Infrastructure.

The Department of Transport and Major Infrastructure recently awarded a $1.7 million contract to EY to size up the potential value of the 5000km worth of rail that sprawls through WA.