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2nd iron ore train derails in Western Australia in a week

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2nd iron ore train derails in Western Australia in a week

Mineral Resources Ltd. confirmed Nov. 12 that about 30 empty wagons had derailed the previous day while travelling from Esperance in Western Australia's southwest back to its Koolyanobbing iron ore operation, and expects to know by Nov. 13 how long it will take for the track to be up and running.

The news comes just one week after BHP Billiton Group intentionally derailed a runaway iron ore-laden train also in Western Australia, damaging 1.5 kilometers of track in the process and disrupting supply to customers for at least a week.

In the latest incident, the train — comprising Mineral Resources-owned locomotives and rolling stock — was south of Norseman in the Yilgarn region when the derailment occurred early on the morning of Nov. 11, after flash flooding in the Goldfields washed out some ballast from under a small section of the track.

Mineral Resources said no one was hurt in the incident in which S&P Global Market Intelligence understands about 30 of the 106 wagons were derailed. The locomotive, which contained at least one person, managed to stay on the track.

Mineral Resources told the ASX Nov. 12 that it does not expect the derailment to have a material impact on its Koolyanobbing iron ore production and shipment schedule, and has only just started building up its stockpiles having just shipped first product from that operation.

The train was on its way back from that trip having delivered 7,488 tonnes of iron ore fines to Mineral Resources' Esperance port facility.

The miner is but one user of that track owned by Arc Infrastructure, which operates more than 5,000 kilometers of freight network across Western Australia.

S&P Global Market Intelligence has learned that investigators were on site on Nov. 12 and that there would be a regroup by mid-afternoon local time to work out the time frame to get the track back online. Repair crews have been mobilized and will start work once the investigation is complete.

Arc CEO Paul Larsen said in a statement to S&P Global Market Intelligence that his company has mobilized crews to repair the track and "bring the line back into operation as soon as possible."

"I am reassured that no one was injured in Sunday’s derailment. Arc is working with Mineral Resources and ... rail contractors on getting services restored as quickly and safely as possible," he said.

Mineral Resources Managing Director Chris Ellison expressed similar sentiments in his company's ASX statement.

"Mineral Resources continually reviews its operating procedures to ensure we maintain a safe work place and achieve our safety objectives," he said.

"Initial investigations into this derailment suggest our safe train operating procedures were followed at all times, and that the derailment was caused by a section of the train track being washed out caused by Saturday’s heavy rainfall and flash flooding."