An alliance representing the mining companies of the Pilbara region have decided to go ahead with the feasibility study of the proposed port expansion. The news was first reported by a Western Australian news agency.

The name of the alliance is North West Iron Ore Alliance (NWIOA).

The group of the Western Australia-based companies decided to do so after the capital cost of expansion of the port was estimated to be A$2.1 billion.

NWIOA said that since the pre-feasibility study of the expansion of inner harbour of the Port Hedland, met with the commercial objectives of the shareholders. The port is situated at the South West Creek.

The definitive feasibility test, along with other technical studies, will also include engineering as well as an in-depth assessment of the various funding alternatives for the project.

This would happen along side the attempts to get all the necessary approvals.

The port expansion will prove to be very beneficial for three companies- Brockman Resources, Atlas Iron and FerrAus. With a larger port with them, they would be able to guarantee access to an independent and cost-effective shipping facility.