The land access agreement gives Magnetite direct access to the existing Hillgrange rail siding, with about 5km of frontage to the rail corridor.

The rail siding is 55km from the Razorback mine site.

It is one of 13 existing crossing loops on the 371km, Australian Rail Track Corporation-controlled Crystal Brook-Broken Hill standard gauge railway line between the Peterborough and Yunta sidings.

The ARTC told Magnetite Mines it could develop an exclusive-use rail siding and spur line infrastructure at Hillgrange.

Magnetite Mines is also working with Aurizon to arrange above rail services, which include trains, locomotives and iron ore wagons.

Magnetite Mines chief executive officer Tim Dobson said the availability of open access rail within 55km of Razorback was a valuable feature of the project.

"The planned infrastructure at the existing Hillgrange rail siding will be Razorback's connection to global markets, enabling access to the national rail network for the delivery of our high-grade iron ore products to customers," he said.

"Our relationships and agreements with local landowners and pastoralists are key to a successful outcome for the project and in this case, we are encouraged by the outcome achieved."

Dobson said negotiating a mutually beneficial and flexible land access agreement would underpin a positive, long-term relationship for years to come.