QR National Limited (ASX:QRN) has advised that it’s sealed a $900 million rail haulage deal with Gindalbie Metals Limited (ASX:GBG) for the Karara Iron Ore Project in Western Australia.
The rail haulage agreement has now become unconditional as all conditions have been finalised.
Under the 10-year deal inked in June, QR will transport magnetite concentrate or direct shipping ore from Gindalbie’s Karara project from January 2012.
QR plans to invest $200 million into new locomotives, wagons, and upgrading administration and maintenance facilities.
In the 2011 financial year QR National recorded a net profit of $350 million.