BC Iron Limited announced that it has entered into a non binding MoU with Fortescue Metals Group Limited subsidiary The Pilbara Infrastructure Pty Ltd for the future provision of bulk commodity transport services for its Nullagine Iron Ore Project in the Pilbara region of Western Australia.

The MoU allows for BC Iron to negotiate the use of Fortescue's rail haulage, port and ship loading facilities on commercial terms to transport its ore. Furthermore, the parties have also agreed to consider other arrangements such as joint ventures, mine gate sales or any other arrangements reasonably agreed to between the Parties.

BC Iron's Nullagine project, which is still in the exploration phase, is located northeast of FMG's Cloud Break deposit and close to FMG’s rail line.

Fortescue is developing extensive rail, port and ship loading infrastructure as part of its Chichester Iron Project. The agreement is the second for Fortescue, which reached a similar infrastructure sharing agreement with iron ore hopeful Atlas Iron Ltd last month.