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"Mining News" article 1/10/2007

State agreement not essential: Yilgarn


Monday, 1 October 2007

YILGARN Infrastructure says its plans to build port and rail infrastructure in the Mid-West region of Western Australia are not dependent on the WA Government upholding Midwest Corporation's state agreement.



The company responded to comments made by WA Treasurer Eric Ripper last week, after he told Parliament the agreement should be cancelled and Midwest had ignored its obligations and was misrepresenting it by claiming it was exclusively entitled to build infrastructure.

But Yilgarn chairman John Saunders said the WA Government's comments would not have an impact on the project's development, which he said was on track.

"Yilgarn has always held the view that Midwest's legal entitlement to the Act could provide a vehicle to bring about cooperation among all mines and help expedite the infrastructure development," Saunders said.

"However, Yilgarn's strong financial backing and our capacity to undertake construction and operation is not conditional on this legislation."

Yilgarn and Midwest Corp are bidding against Murchison Metals and Mitsubishi for the right to build a port and rail network to service the emerging iron ore industry in the Mid-West.

Last week Ripper said Midwest Corp had no basis to claim to investors that it has a workable agreement with the state for port and rail development.

Midwest Corp again defended the agreement last week following the comments, saying it had received legal advice from a Queen's Counsel that the agreement was valid and it provided a sound basis for the development of the port and rail network.